Enabling "Place Guarantee Funds on-hold?"
Go to Admin>>Loan Product>>Create Loan Product.
Linking Savings account to the Loan account
Client>>New Loan application>> Select Savings account to link to loan account.
In the Provided example, Loan application is being created for Anna White for a Loan amount of 10000 US$.
Percentage amount needs to be calculated manually outside the Mifos X.
Since here,
a) Guarantee from Own funds is 40% of the Loan amount, that will be 4000 US$.
b) Guarantee from Guarantor funds is 20% of the Loan amount, that will be 2000 US$.
Note: This amount needs to be input in the amount field initially with respect to the Guarantee's.
Create Guarantor
In the Loan application page>>More>>Create Guarantor
a) Creating Guarantor for Own account and providing amount to block the funds from savings account.
b) Creating Guarantor for Other guarantees and providing amount to block the funds from savings account.
Then Approve the Loan & Disburse.
Recovery from Loan:
This enables recovering of provided percentage loan amount from Guarantor through linked savings account.
Funds getting released:
Once the Repayment start happening. The funds gets released automatically for savings account with respect to the provided percentage. Note: Guarantor funds gets "released" first, before loan account holder's funds are "released"
Withdrawing amount from savings account
Here In the image below, on trying to withdraw the set percentage, it will throw an error message as "Insufficient funds to complete the transactions."
Reference Link: Guarantor Amount Capture and Blocking/On-Hold of Funds in Guarantor Accounts