If you want to apply for a bank loan, you must meet the conditions of the bank loan and go through various procedures according to the requirements of the bank. Even in some cases, a guarantor is needed. So, why do you need a guarantor for bank loans? Let's explain why. 1 Your personal qualifications are insufficient. Some people are told that they need to find a guarantor when applying for a loan in order to successfully apply for a loan. The main reason is that your personal qualifications are insufficient, such as no stable job and no stable income. In this case, the bank will think that your repayment ability is limited and your funds may be threatened, so they ask you to find a guarantor to guarantee! You are dealing with secured loans. In order to get a higher quota, some people will not choose unsecured loans, but secured loans, because they have no collateral under their names and can only apply for secured loans. If they want to apply for a secured loan, they must find a guarantor. This is the rule for any bank. Only by finding the right person as a guarantor can we successfully handle the secured loan! Guarantee brings benefits to banks. The reason why banks require loan applicants to find guarantors is that finding guarantors can bring many benefits to banks. One of the most important benefits is that banks can add more protection for their own funds. For example, when the loan applicant is unable to repay the loan, the guarantor needs to bear the responsibility of repayment, so that the bank can effectively avoid the embarrassment of not being able to recover the funds! The reason for looking for a guarantor is that the bank wants to minimize its own risk, which is more conducive to the bank's operation and can help the bank recover the debt more easily.