Peer Guarantor Pledges & Cross-Guarantee Matrix

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Peer Guarantor Pledges & Cross-Guarantee Matrix within SmartERP.

Manage member loan guarantors, lock pledged savings balances, prevent reciprocal cross-guarantees, and monitor guarantor risk exposure.

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2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_sacco_core, smarterp_equb, smarterp_loan_management
• Security Groups:
  • SACCO Loan Officer (Technical ID: smarterp_sacco.group_sacco_officer)
  • SACCO Credit Committee Member (Technical ID: smarterp_sacco.group_sacco_committee)
  • SACCO General Manager (Technical ID: smarterp_sacco.group_sacco_manager)
• Master Data Dependencies: Member KYC profiles, share capital registers, savings product tiers, loan products with reducing-balance schedules, and Equb rotational pool configurations.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the SACCO & Equb app icon.
4. From the top navigation bar, open SACCO & Equb → Members → KYC Registry / Savings Accounts / Loan Applications / Equb Pools.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Member Identification Number (Mandatory): Unique membership number complying with Ethiopian Cooperative Commission rules
   • Full Name & Kebele ID (Mandatory): Verified member identity with physical residence verification
   • Share Capital Subscriptions (Mandatory): Subscribed shares not exceeding statutory 10% member ceiling (Proclamation 985/2016)
   • Primary Savings Product (Mandatory): Compulsory regular monthly savings account configuration
3. Configure optional operational parameters and localized tags as required:
   • Guarantor & Collateral (Optional): Approved co-signers with locked savings accounts or registered vehicle/property lien
   • Equb Rotational Group (Optional): Linked digital Equb pool with lottery draw eligibility
   • Beneficiary Nominee (Optional): Designated next of kin for death or disability benefit transfer
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Application → KYC Verified → Approved → Active / Disbursed → Delinquency Monitored → Settled).
• Ledger & System Impact: Loan disbursement debits loans receivable and credits cash/bank; loan repayments credit interest income and loan principal, updating 5-tier NBE provisioning registers.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Peer Guarantor Social Collateral Mechanisms#

Financial cooperatives leverage peer social collateral to secure micro-credit without requiring expensive real estate mortgages. Active members pledge portions of their unencumbered savings balances to co-sign peer loan applications.

Rules Enforced by the Guarantor Engine#

SmartERP programmatically enforces strict anti-collusion rules:

1. Self-Guarantee Prohibited: A member cannot act as guarantor for their own loan.
2. Reciprocal Guarantee Block (Tit-for-Tat): If Member A guarantees Member B, Member B cannot guarantee Member A while the first loan remains active.
3. Pledged Balance Lock: When a guarantor pledges 20,000.00 ETB, that amount is immediately locked against withdrawal or subsequent loan borrowing until the borrower amortizes the debt.
4. Maximum Guarantee Limits: No member may guarantee more than three active loans concurrently.

Adding Guarantors to a Loan Application#

1. On the loan application screen, navigate to the Guarantors tab.
2. Click Add Guarantor Member:
   • Select guarantor member (e.g., Ato Daniel Bekele).
   • Enter pledged guarantee amount (e.g., 25,000.00 ETB).
3. The system validates:
   • Guarantor has active membership $> 6$ months.
   • Free unencumbered savings $\ge 25,000.00\, \text{ETB}$.
   • Zero active delinquency on guarantor's own accounts.
4. The guarantor signs digitally via mobile portal OTP or physical biometric thumbprint.
5. Pledged amount locks automatically across core banking registers.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • SACCO: Accrue monthly member savings interest (smarterp_sacco.ir_cron_savings_interest): Runs on the final day of each calendar month to credit interest
  • Loan: Evaluate 5-tier NBE delinquency classification (smarterp_sacco.ir_cron_loan_delinquency): Runs nightly to compute loan loss provisions per NBE directives
  • Equb: Execute scheduled lottery draw (smarterp_sacco.ir_cron_equb_draw): Runs on defined pool cycle dates using provably fair random selection
• Custom Print Templates & Reports:
  • Member Savings Passbook & Transaction Ledger
  • Loan Amortization Schedule (Reducing Balance)
  • NBE 5-Tier Delinquency & Loan Loss Provisioning Statement
  • Annual Patronage Dividend Distribution Schedule
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#