What does guaranteed loan mean? What is the difference between guaranteed loan and credit loan?

1. What is the meaning of guaranteed loan?

A guaranteed loan means that the applicant promises through a third party in the form of guarantee. If the applicant fails to repay the loan, the third-party guarantor will bear the responsibility. A form of loan liability, and the guarantor must be repaying the applicant all of the loan funds. The loan guarantee provided by the guarantor for the loan is an irrevocable full joint liability guarantee, which refers to the loan principal and interest stipulated in the loan contract and related expenses incurred by the loan contract.

The loan procedures for guaranteed loans are simple and do not require registration and evaluation procedures. You can choose one or more guarantors, and the guarantor is willing to provide you with a guarantee period of at least 1 year. It can be seen from this that guaranteed loans and credit loans are both forms of ID card loans.

2. What is the difference between guaranteed loans and mortgage loans?

1. Loan interest rates are different

Since guaranteed loans have collateral or third-party guarantors, Relatively speaking, the loan risk is relatively small, and the corresponding loan interest rate will be relatively low. If there is no guarantor or collateral for a credit loan, the loan risk will be much greater, so the existing loan risk will be much greater, so the loan interest rate It will also be a little higher.

2. The loan period is different

If the applicant applies for a guaranteed loan and provides collateral, the loan period can be up to 20 years, but the credit loan period is usually They are all short, some are just a few months, longer ones are usually about 1 year, and the longest loan period is 5 years.

3. The loan amount is different

The loan amount of the guaranteed loan is linked to the value of your mortgage or the personal financial situation of the guarantor. If the borrower is a house mortgage, then you can The low loan limit can reach about 70% of the market value of the house, but the credit limit is linked to the applicant's personal monthly income, which is generally 5 to 10 times the monthly income.

4. The loan speed is different

Since the guaranteed loan has the existence of collateral or guarantor, the procedures are more complicated during the process, and the loan time will naturally be longer. The credit loan procedure is relatively simple. After the borrower meets the loan conditions, the loan can usually be issued in about a week.

The above is the difference between guaranteed loans and credit loans. When you need a loan, you can choose different loans according to your personal needs.

What is the meaning of guaranteed loan?

Guaranteed loan means that the lender uses a prescribed guarantee method and a third party promises to assume joint and several liability according to regulations when the borrower fails to repay the principal and interest of the loan. Loans issued. The loan guarantee provided by the guarantor for the loan is an irrevocable full joint liability guarantee. The procedures for guaranteed loans are simple, and generally there is no need to go through relevant registration and evaluation procedures; the guarantor can choose one or more; if the guarantor is willing to provide guarantee for a long time (one year), he can sign a maximum guaranteed loan contract. During the maximum guarantee period, no more guarantees will be made. Go through relevant guarantee procedures. Guaranteed loans should strictly implement the loan interest rate policy stipulated by the People's Bank of China and adhere to the principles of fairness, legality and compliance with the contract. The interest rate of medium and long-term loans is fixed for one year according to the loan contract, that is, within one year from the effective date of the contract, it will be based on the interest rate agreed in the loan contract, and will not change if the interest rate is adjusted; after one year, it will be adjusted according to the current interest rate and a new interest rate will be implemented.

Legal Basis

Article 686 of the "People's Republic of China and Civil Code" Guarantee methods include general guarantees and joint and several liability guarantees.

If the parties do not agree on the guarantee method in the guarantee contract or the agreement is unclear, they shall bear the guarantee liability in accordance with the general guarantee.

What is a guaranteed loan?

Guaranteed loans refer to loans issued by the lender in accordance with the guarantee method stipulated in the "Guarantee Law" and with the promise of a third party to assume joint and several liability in accordance with regulations when the borrower fails to repay the principal and interest of the loan. The loan guarantee provided by the guarantor for the loan is an irrevocable full joint liability guarantee, which refers to the loan principal and interest stipulated in the loan contract and related expenses incurred by the loan contract.

The guarantor must also bear all joint and several civil liabilities arising from the loan contract.

Guaranteed loan means that the lender uses the guarantee method stipulated in the "Guarantee Law" to promise that when the borrower cannot repay the principal and interest of the loan, the lender will assume joint and several liability for the guaranteed loan according to regulations

Loans issued. The loan guarantee provided by the guarantor for the loan is an irrevocable full joint liability guarantee, which refers to the loan principal and interest stipulated in the loan contract and related expenses incurred by the loan contract. The guarantor must also bear all joint and several civil liabilities arising from the loan contract. It is a type of secured loan in which a second person other than the lender and borrower acts as a guarantor to guarantee the borrower's return of the loan.

What does guaranteed loan mean?

Guaranteed loan means that the lender uses the guarantee method stipulated in the "Guarantee Law" to promise with a third party to bear the obligation as agreed when the borrower cannot repay the principal and interest of the loan. Loans issued with general guarantee liability or joint and several guarantee liability.

The guarantor can choose one or more; if the guarantor is willing to provide guarantee for a long period of time (one year), he can sign a maximum guaranteed loan contract. During the maximum guarantee period, the relevant guarantee procedures will no longer be processed.

Guarantees can be divided into general guarantees and joint and several liability guarantees.

That’s it for the introduction of what a guaranteed loan is.