Legal analysis: After the lender pays the loan to the borrower, the risk shall be borne by the lender. In order to ensure the realization of creditor's rights and reduce the risk of borrowing, in recent years, China's financial institutions have increasingly adopted the method of guarantee in their credit business. According to the relevant provisions of the Commercial Bank Law. When a commercial bank lends money, the borrower shall provide a guarantee. Commercial banks should conduct a comprehensive review of the repayment ability of the guarantor to determine whether the guarantor has really provided the guarantee; Identify and verify the ownership and value of collateral, find out its property right certificate, and strictly examine the possibility of collateral realization. Only after examination and evaluation by commercial banks, it is confirmed that the borrower has good credit standing and can repay the loan, can guarantee be provided. Therefore, when a financial institution borrows money, the parties concerned shall determine the guarantee method in accordance with the relevant provisions. Where a loan is made between natural persons, the parties may make an agreement on the guarantee according to the actual situation.

Legal basis: Article 67 1 of the Civil Code of People's Republic of China (PRC). If the lender fails to provide the loan according to the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses. If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount.