A “guarantor declined” status means the system could not validate the guarantor provided for a loan application. This may happen if the guarantor’s details like BVN or phone number do not match what’s in the verification database. It can also occur if the guarantor has already guaranteed too many loans and reached their maximum allowable limit.
For instance, let’s say a borrower lists a friend as their guarantor using an incorrect BVN or inactive phone number. Once the system tries to verify this information and fails, it marks the guarantor status as declined.
Another example: if an employee guarantees multiple coworkers and hits a policy limit, the next attempt will be declined. When this happens, the loan won’t proceed until the borrower provides a valid guarantor that passes all verification checks. To fix this, the borrower must edit the guarantor information and submit new, accurate details for revalidation. By flagging bad or unverifiable guarantors early, this feature protects lenders from unnecessary exposure and default risks. It also encourages borrowers to select responsible, reachable guarantors who can actually back their loan commitment.
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