Customers want more loans, and the lower the interest rate, the better. It is difficult for banks to find a way for their customers. Guarantee companies will strive for customers to the greatest extent with their familiarity with loan policies and their own loan products.
3. The loan processing time is long. Based on the familiarity with the process and relevant departments, the guarantee company can control the processing rhythm and reduce the processing time.
4. The borrower can't provide enough collateral that meets the requirements of the bank, so a guarantee company is introduced to guarantee the borrower in the bank. Once overdue or owing interest, the guarantee company shall bear the responsibility of paying on behalf of it.
5. The borrower guaranteed by the guarantee company has been further examined by the guarantee company, and the risk is more controllable and more acceptable to banks.
6. With the intervention of the guarantee company, the bank does not need to apply for real estate mortgage, and the loan procedure is simple, only one loan contract and one guarantee contract are needed.
Extended data:
1. A loan guarantee company refers to a non-bank financial institution established in rural areas by domestic commercial banks or rural cooperative banks with the approval of the China Banking Regulatory Commission in accordance with relevant laws and regulations, and providing loan services for county farmers, agriculture and rural economic development.
Nowadays, many internet companies cheat money under the banner of loan guarantee companies. In fact, there are very few formal loan companies on the market now, and many unsecured loan companies that say how to be honest are actually cheating money.
Baidu encyclopedia-loan guarantee company