1. Personal loan guarantee insurance covers the risk that the insured (borrower) cannot repay the due loan within the time limit stipulated in the loan contract. When the borrower fails to repay the loan on time, the insurer shall bear the repayment responsibility.

2. This type of insurance is established to cooperate with financial institutions to carry out personal consumption loan business, and is mainly applicable to personal housing consumption loans, personal automobile consumption loans and other loan businesses. At present, China mainly provides two kinds of insurance: personal automobile consumption loan guarantee insurance and personal housing mortgage loan guarantee insurance.