A loan is a loan granted on the condition that a third party provides a corresponding guarantee for the borrower. Guarantee can be a person's guarantee or a thing's guarantee. A letter of guarantee refers to a guarantee document issued by an economic entity with repayment ability. When the borrower fails to repay the loan principal and interest, the guarantor shall bear the responsibility of repaying the loan principal and interest. Property guarantee is based on a specific object or a certain right. Once the borrower fails to perform, the bank can exercise its rights on the collateral to ensure that the creditor's rights will not be lost.

What is the definition of bank-guaranteed loan?

Secured loan means that when the borrower fails to provide the mortgaged (pledged) property in full, the third party recognized by the lender shall provide joint liability guarantee. If the guarantor is a legal person, he must have the ability to repay all the principal and interest of the loan on his behalf and open a deposit account in a bank. If the guarantor is a natural person, he must have a fixed source of income, have sufficient compensation ability and have a certain deposit in the loan bank; The guarantor and the creditor shall conclude a guarantee contract in writing. If the guarantor is changed, the formalities for changing the guarantor must be handled in accordance with the regulations. Without the approval of the lender, the original guarantee contract shall not be revoked.

According to the different ways of guarantee, it can be divided into guarantee, mortgage and pledge.

1. Guaranteed loan: refers to the loan issued by a third party under the guarantee mode stipulated in the Guarantee Law (1 year1abolished on October 202 1 day) with the promise that the borrower will bear joint and several liabilities as agreed when it fails to repay the loan.

2. Mortgage loan: refers to the loan granted with the property of the borrower or a third party as collateral according to the mortgage method stipulated in the Guarantee Law (repealed on 202 1 1).

3. It refers to the loan granted with the movable property or rights of the borrower or a third party as pledge according to the Guarantee Law (202 1 1 repealed).

legal ground

Article 387 of the Civil Code of People's Republic of China (PRC) Scope of Application of Security Interests Countersecured creditors may set up security interests in accordance with the provisions of this Law and other laws in order to guarantee the realization of their creditor's rights in civil activities such as lending, buying and selling. If a third party provides a guarantee for the debtor to the creditor, it may require the debtor to provide a counter-guarantee. The provisions of this law and other laws shall apply to counter-guarantee.

What are the concepts of credit loan and secured loan? What is the difference?

Now there are more and more types of loans. Credit loan and secured loan, as the two most common loan methods, are also the preferred loan channels for borrowers. So what is the direct difference between them?

Credit loan refers to the loan issued by the borrower's reputation, and the borrower does not need to provide guarantee.

A secured loan refers to a loan provided by the borrower or a third party according to law. Secured loans include mortgage loans, mortgage loans.

1. Different loan interest rates

Because secured loans have collateral or a third-party guarantor, the loan risk is relatively small, and the corresponding loan interest rate will be relatively low, while credit loans have no guarantor and collateral, and the loan risk is much greater, so the loan interest rate will be higher.

2. The loan term is different.

If the applicant applies for a secured loan with collateral, the loan term can be up to 20 years, but the credit loan term is usually very short, some of them are only a few months, the longer one is usually around 1 year, and the longest one is 5 years.

3. The loan amount is different

The loan amount of the secured loan is linked to the value of your collateral or the personal economic situation of the guarantor. If the borrower has a mortgage, the repayment amount can reach about 70% of the market value of the house, but the amount of the loan is linked to the applicant's personal monthly income, which is generally 5 to 10 times of the monthly income.

4. Different loan interest rates

Due to the existence of collateral or guarantor, the procedures in the process of answering secured loans are complicated, and the natural lending time is long, while the procedures for credit loans are relatively simple. After the borrower meets the loan conditions, it usually takes about a week to lend money.

Definition of secured loan

A loan is a loan granted on the condition that a third party provides a corresponding guarantee for the borrower. Guarantee can be a person's guarantee or a thing's guarantee. A letter of guarantee refers to a guarantee document issued by an economic entity with repayment ability. When the borrower fails to repay the loan principal and interest, the guarantor shall bear the responsibility of repaying the loan principal and interest. Property guarantee is based on a specific object or a certain right. Once the borrower fails to perform, the bank can exercise its rights on the collateral to ensure that the creditor's rights will not be lost.

The introduction of the concept of secured loan ends here.