Does a guarantor need to be provided for a loan?

Why do you need a guarantor for a bank loan? What is the use of a guarantor? Here are the reasons why a guarantor is required for a loan that I have compiled for you. , let’s take a look!

The reason why a guarantor is required for a loan

Generally speaking, there is no clear rule that a guarantor must be provided when applying for a loan. Guarantees are mostly required because the borrower's qualifications are not good enough and the lending institution feels that there is a risk. If the borrower has a stable income, good personal credit, and meets the relevant loan requirements, it is relatively easy to apply for a loan. Of course, in addition to the guarantor, you can also apply for a loan if the borrower can provide relevant collateral, such as real estate, cars, etc. If there is an item guarantee, it is very possible to apply for a loan even if the borrower has average personal qualifications. However, different lending institutions have different regulations, and the borrower needs to refer to the regulations of the relevant institutions for specific circumstances.

Legal liability of the guarantor

Therefore, whether a guarantor is required to apply for a bank loan actually depends on the borrower's personal qualifications.

The legal liability paid by the guarantor is divided into two types: 1. General guarantee liability. The liability paid is that when the debtor cannot repay the debt when it is due, the guarantor must bear the responsibility for it, that is, repay the debt when it is due. 2. Joint and several liability. The obligation to pay is that when the debt is due to be repaid, the creditor has the right to require the debtor or guarantor to repay the debt. When the guarantee is a general guarantee, the guarantor has the right to sue first, that is, the guarantor has the right to reject the creditor's request for repayment before the creditor applies for enforcement against the debtor's property or fails to enforce the security interest. Joint guarantors have no such right.

Classification of bank loans

Classification of bank loans According to different classification standards, bank loans have various types.

For example: 1. According to different repayment periods, they can be divided into short-term loans, medium-term loans and long-term loans; 2. According to different repayment methods, they can be divided into current loans, term loans and overdrafts; 3. According to loan Different uses or objects can be divided into industrial and commercial loans, agricultural loans, consumer loans, securities broker loans, etc.; 4. According to different loan guarantee conditions, they can be divided into bill discount loans, bill mortgage loans, commodity mortgage loans, and credit loans. Loans, etc.; 5. According to different loan amounts, they can be divided into wholesale loans and retail loans; 6. According to different interest rate agreement methods, they can be divided into fixed-rate loans and floating-rate loans, etc.

Required conditions for borrowers

1. Natural persons aged 18-60 years old (Hong Kong, Macao, Taiwan, Mainland China and foreign nationals are also acceptable) 2. Have a stable career, stable income, and repay on schedule Ability to borrow principal and interest 3. The actual age of the borrower plus the loan application period should not exceed 70 years old

Materials that the borrower should provide

1. Identity cards and household registers of both spouses/ Foreigners need temporary residence permit and household registration book 2. Marriage certificate/divorce certificate or court judgment/single certificate 2 copies 3. Proof of income (format designated by the bank) 4. Copy of the business license of the unit (with official seal) 5. Credit certificate : Including academic certificates, other real estate, bank statements, certificates of deposit, etc. 6. If the borrower is a corporate legal person, it must also provide an annual inspection business license, tax registration certificate, organization code certificate, corporate articles of association, and financial statements. Note: Starting from around May 10, 2010, those who have a non-local household registration and purchase a house in Beijing must provide proof of tax payment for the past year or a social insurance policy for one year and other materials that can prove that they have worked in Beijing for one year. The house seller should also provide: 1. ID cards, household registers, and marriage certificates of both spouses (marriage certificate or single certificate) 2. Do business loans with real estate certificates need to be guaranteed?

Whether it is a large enterprise or a small and medium-sized enterprise, its development is inseparable from the support of credit funds.

But in the loan process, there must be a guarantee. So why do corporate loans need guarantees? Let’s find out together below.

Do corporate loans require guarantees? Corporate loans require guarantees. The specific reasons are as follows:

1. The cost of small bank loans is high. First, the marketing cost of bank small loans is high. It is difficult for small businesses to directly apply for loans from banks, so many small businesses often seek help from guarantee agencies. The cost of selecting customers is relatively low for guarantee agencies. They can select high-quality projects and introduce them to cooperative banks to improve the success rate of financing. It will reduce the marketing cost of small loans of banks.

2. Guarantees can effectively release risks. In addition, the advantages of guarantee institutions are irreplaceable when risks are released after the event. When projects with direct bank loans have risks, the disposal of collateral often takes a long time and the litigation costs are high. Poor liquidity. The cash compensation provided by the guarantee institution greatly solves the problem of difficult bank disposal.

3. Guarantee companies lend money quickly. Furthermore, guarantee companies are very timely. As a bank, its inherent loan model process causes a lot of time wastage for small and medium-sized enterprise owners; however, guarantee companies precisely demonstrate flexible and changeable financing solution models, which greatly saves business owners' time and energy and can cater to their urgent needs for funds.

4. Large guarantee loan limit Finally, the guarantee company's credit limit on the basis of mortgage greatly exceeds the value of the mortgaged assets. Provide more needed funds for small and medium-sized enterprises. However, it is worth noting that the guarantee company does not lend with its own funds, but guarantees the credibility of the company and the bank lends it. That is to say, if an enterprise's bank credit does not meet the loan standards, it can find a guarantee company for guarantee. Then the guarantee company will do the part of the business that the bank is not willing to do, and the risk will be borne by the guarantee company. Does a company loan to buy a car require a legal person loan? What are the procedures and conditions required for a company loan to buy a car?

As the saying goes, "With a car, you can travel a thousand miles, but without a car, it is difficult to travel even an inch." Nowadays, it seems inconvenient to go anywhere without a car, so many people have to buy a car even if they get a loan. car. However, not everyone is eligible to apply for a car loan. Some people with poor credit check want to buy a car with a loan in the name of a company. So does a company loan require a legal person loan to buy a car?

A company loan does not require a legal person loan to buy a car. Generally speaking, a company loan to buy a car is a loan in the name of the company, so there is no requirement that a legal person must provide a loan before you can buy a car. However, it should be noted that no matter who borrows the loan, they must submit the legal person’s ID card as application materials. They may also need the legal person’s marriage certificate, household registration book, and the company’s tax receipts for the past three months and other documents. Since different banks may have different requirements, specific documents need to be subject to bank regulations. In addition, some banks may also require a guarantor. Only if these conditions are met can you successfully apply for a car loan.

What are the procedures and conditions required for a company loan to buy a car?

1. Procedures 1. Valid ID card, household register or other valid proof of residence of the borrower; 2. Proof of work and income; 3. Car purchase agreement/contract signed with the dealer; 4. Company business license , Organization code certificate, etc.; 5. Other materials required by the lending institution from the borrower.

2. Conditions 1. Have the ability to repay the bank loan; 2. During the loan application period, the down payment for the car purchase must be no less than the bank’s requirements and deposit it into the bank’s accounting department; 3. Provide the bank with a recognized guarantee; 4. Be willing to accept other necessary conditions proposed by the bank.

Company loan car purchase process 1. Submit an application: After you are optimistic about the vehicle to be purchased, fill in the car consumer loan application form and credit status survey form, and submit it to the lending bank together with relevant certificates of personal circumstances. 2. The bank conducts pre-loan investigation and approval: After accepting the loan application, the bank will investigate the credit status of the borrower and the guarantor. For those who meet the loan conditions, the bank will promptly notify the borrower to fill in various forms. 3. Contract signing: Notify the borrower to sign a loan contract, guarantee contract, mortgage contract, and handle mortgage registration and insurance procedures.

4. Loan disbursement: The bank issues the loan and the bank directly transfers it to the car dealer's account. 5. Go through the procedures for picking up the car: The borrower will hand over the down payment to the car dealer, and go through the procedures for picking up the car with the passbook and the car pick-up note issued by the bank.