Legal analysis: the guarantee company has its advantages: the loan amount is high-according to the regulations of most banks, the maximum amount of mortgage loan is only 70% of the assessed value of the mortgaged house, but if the borrower finds a guarantee company to operate, it is likely to achieve a satisfactory full loan result. For the same reason, some users who applied for mortgage loans even realized their desire to buy a house with zero down payment. Low application threshold-when the application materials are incomplete and the mortgaged house does not meet the requirements, it is difficult for the borrower to apply for a loan from the bank, and the outcome often ends in failure. But if there is a guarantee company as a guarantee, things are expected to turn around. It is not difficult to see that another advantage of the guarantee company is to serve users who cannot obtain loans directly from banks. The disadvantage is the rising cost of loans-there are advantages and disadvantages in finding a loan from a guarantee company. Compared with direct bank loans, the guarantee company has an extra loan guarantee service fee, which correspondingly increases the borrower's loan cost. However, if the borrower can compare the charging standards of the guarantee company, the loan cost can also be controlled to a certain extent.
Legal basis: Article 687 of the Civil Law of People's Republic of China (PRC), the guarantor of general guarantee has the right to refuse to undertake the guarantee liability to the creditor, except in any of the following circumstances:
(1) The debtor's whereabouts are unknown and there is no property available for execution;
(2) The people's court has accepted the bankruptcy case of the debtor;
(3) The creditor has evidence to prove that the debtor's property is insufficient to perform all debts or cannot perform debts;
(4) The Guarantor waives the rights stipulated in this clause in writing.