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What does pending approval from a guarantor mean?
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A borrower has submitted their loan application, passed all the eligibility checks, and is ready to receive their funds. But the loan is stuck. The status reads “Pending guarantor approval” and nothing is moving. What does this mean, and what needs to happen next?
This guide explains exactly what the pending guarantor approval status means, how the guarantor process works from both the borrower’s and the guarantor’s perspective, where lenders can monitor these applications on the admin console, and what to do when a guarantor is unresponsive.
What is a guarantor?
A guarantor is a person who agrees to take responsibility for a borrower’s loan repayment if the borrower fails to repay. By guaranteeing a loan, they are vouching for the borrower’s creditworthiness and accepting that the lender may seek repayment from them if the borrower defaults.
Lenders use guarantors as an additional layer of protection for loans where the borrower’s profile alone may not provide sufficient confidence. It is particularly common in group lending, community lending, and products designed for borrowers with limited credit history.
What does “pending guarantor approval” mean?
The “pending guarantor approval” status appears on a loan request when the borrower has submitted their application and a guarantor is required, but the guarantor has not yet completed the approval process. The system holds the loan at this stage and will not move it forward until the guarantor acts.
This status protects lenders from disbursing funds without the required backing. If the guarantor approves the request, the loan progresses to the next stage of the review process. If the guarantor does not respond or declines, the loan will not be disbursed.
Real-world example
A borrower applies for a ₦100,000 personal loan on a product that requires a guarantor. The borrower completes their application, passes the eligibility checks, and is prompted to share a guarantor link with someone who can back the loan. They send the link to a colleague. The loan status changes to “Pending guarantor approval” and stays there until the colleague clicks the link and completes the guarantor form. If the colleague ignores the link or the request expires, the loan will not proceed to disbursement.
How lenders configure guarantor requirements
Requiring a guarantor is configured at the loan product level on the Lendsqr admin console. This means you set it once per product and it applies automatically to all borrowers who apply for that product. Here is how to configure it:
On the left navigation pane, locate Back Office, expand “Product Management”, and select “Loan Products”.
Click on the specific loan product you want to configure.
Select the “Product Attributes” tab.
Locate the “Guarantor required” attribute, which is typically the first attribute on the list.
Click the “More” icon to the right of the attribute and select “Edit”.
Check the “Guarantor required” box and click “Save”.
Once saved, all borrowers applying for this product will be required to provide a guarantor as part of their application before the loan can proceed.
How the guarantor process works
Step 1 — The borrower shares the guarantor link
When a borrower applies for a loan product that requires a guarantor, they are directed to a screen during the application process where a unique guarantor link is generated. The borrower must copy this link and share it directly with the person they want to act as their guarantor. The borrower can share this link via any channel they choose, such as WhatsApp, SMS, or email.
Because the link is unique and not tied to a specific person in the system, the borrower can share it with anyone. If their first choice of guarantor is unresponsive, they can share the same link with a different person without needing to restart the application or formally change anything in the system.
Step 2 — The guarantor receives and reviews the request
When the guarantor clicks the link, they are taken to a dedicated page that displays:
A guarantor message explaining the implications of guaranteeing the loan, along with the borrower’s name and the loan amount
The borrower’s name, phone number, and email address
The full loan details including the loan amount, interest rate, tenor, application date, and the start and end dates of the loan
This gives the guarantor full visibility of what they are agreeing to before they proceed.
Step 3 — The guarantor completes the approval form
To approve the request, the guarantor clicks the button to guarantee the loan, which takes them to a form where they must provide their own details to finalise the process. The required fields include:
BVN
Date of birth
The last 5 digits of their BVN
Email address
Their relationship to the borrower
Residential address
Once the guarantor submits this form successfully, the loan status updates and the application proceeds to the next stage of the lender’s review process.
Step 4 — What happens if the guarantor does not respond
The system has an automated expiration trigger for guarantor requests. While the exact number of days before expiration is not specified, lenders should advise borrowers to follow up with their guarantors promptly to avoid delays. If the request expires before the guarantor acts, the borrower will need to restart the process by sharing the link again.
If a guarantor chooses not to approve the loan, they can simply ignore the link. There is no formal rejection button in the current flow. The loan will remain in pending status until the request expires or the borrower shares the link with someone else.
Where lenders can monitor pending guarantor approvals
Lenders can view all loan applications with a pending guarantor approval status from the Loan Requests page on the admin console. Follow these steps:
Log in to your Lendsqr admin console.
On the left navigation pane, locate the Customers section, expand “Request Management”, and select “Loan Requests”.
Filter by status to find applications with a “Pending guarantor approval” status.
Click on any specific application to view the full loan request details, including the guarantor status.
To view and manage all guarantors across your platform, navigate to the Customers section and select “Guarantors” under Customer Management. This page shows all guarantors associated with loans on your platform and their current status.
What lenders can do to help resolve pending guarantor approvals
While the lender cannot resend the guarantor link directly from the admin console, there are practical steps you can take to help move things along:
Contact the borrower directly Reach out to the borrower and remind them to follow up with their guarantor. Explain that the loan cannot proceed until the guarantor completes the approval form. Encourage them to check that the link was received and opened.
Advise the borrower to try a different guarantor If the original intended guarantor is unresponsive, remind the borrower that they can share the same unique link with a different person. They do not need to restart their application. The loan will simply remain in pending status until someone completes the guarantor form.
Monitor the Loan Requests page regularly Use the status filter on the Loan Requests page to keep track of all applications stuck in the pending guarantor approval stage. This allows you to identify which borrowers need a follow-up and take action before the request expires.
Best practices for lenders using guarantors
Set clear expectations with borrowers upfront Before a borrower submits their application, make sure they understand that they will need to identify and contact a guarantor as part of the process. Borrowers who are not prepared for this step often experience delays that could have been avoided.
Use guarantors for the right loan products Guarantors add friction to the application process, which can reduce conversion rates. Configure the guarantor requirement only on loan products where the additional protection genuinely outweighs the drop-off risk, such as larger loan amounts, longer tenors, or products designed for borrowers with limited credit history.
Combine guarantors with other risk tools A guarantor requirement works best as one layer of a broader risk management approach. Combine it with credit bureau checks, the Karma blacklist, and direct debit mandates for a more comprehensive protection framework.
The loan has been stuck in pending guarantor approval for several days Contact the borrower and encourage them to follow up with their guarantor or share the link with someone else. If the request has expired, the borrower may need to resubmit. Check the Loan Requests page for the current status of the application.
The guarantor says they did not receive the link The link is shared directly by the borrower, not sent automatically by the system via email or SMS. If the guarantor did not receive it, the borrower needs to resend it through their chosen channel.
The guarantor completed the form but the loan status has not updated Allow some time for the system to process the guarantor’s submission. If the status has not changed after a reasonable period, contact support@lendsqr.com with the loan request reference for investigation.
The Guarantor required attribute is not visible on the Product Attributes tab This may be a subscription plan limitation. The guarantor feature is available on paid plans. Check your current plan and upgrade if necessary.
The borrower wants to use a different guarantor The borrower can share the same unique link with a different person without restarting the application. Advise them to do this if their original guarantor is unresponsive.
