Mutual Guarantee Services


CRAN Mutual Guaranty Trust is the micro-insurance branch of CRAN. It is closely allied to CRAN Microfinance but delivers tailor-made micro-insurance services to rural and peri-urban poor households specifically those which constitute CRAN’s microfinance clientele base. The services and products of CMGT are designed to specifically address the varied micro-insurance needs of our poor clients and as means to poverty reduction. The CMGT is designed as an added service value for our rural microfinance clients with the aim to walk them out of poverty. Firstly, the Mutual Guaranty Trust has a primary aim of eliminating or reducing loan default to the barest minimum. This is accomplished by insuring against common causes for loan default. Two main products are offered to complement each other as a response against default factors common to our target market. These two products are the CRAN Loan Protection Plan and the Comprehensive Cover Plan.

The CRAN’s Loan Protection Plan pays off a client’s loan balance when certain qualifying events occur to him/her. The qualifying events are:

  • Death of the borrower
  • Permanent disability of borrower
  • Fire or flood water causing loss to shop/store

The CRAN’s Comprehensive Cover Plan aims at restoring the client’s financial loss, by paying specific amount of money to the beneficiary when certain life events occur. The specific five events that will trigger payment are:

  • Death of the client
  • Death of client’s spouse
  • Death of client’s minor child (Under 18 years old)
  • Auto/motorcycle accident injuries
  • Fire or Flood Water causing loss to shop/store

These indeed are events which are largely poverty related and do affect our rural and peri-urban clients and target groups.