According to Baidu Law Pro, the difference between a guaranteed loan and a credit loan lies in the loan interest rate, which is lower than that of a credit loan. Because a guaranteed loan has collateral or a third-party guarantor, the loan risk is relatively small. Accordingly, the interest rate of credit loans will be higher, because the loan risk is greater.

Guaranteed loan is a loan form in which the guarantor guarantees the borrower to repay the principal and interest of the loan on time with his own funds and legal assets.