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Why do banks require SMEs to provide guarantees or mortgage pledges when granting loans to SMEs?
For large enterprises, most of them also need guarantee or mortgage pledge, and only a few enterprises can get credit loans, that is, they don't need guarantee or mortgage pledge.

Banks use the probability of default to measure the security of loans. Different types of enterprises-including high-quality listed companies and state-owned monopoly enterprises with different scales and default probabilities-are unlikely to move forward slowly, and there is no need for guarantees and pledged loans.