Why do I have to find a guarantee company when I look for a loan from a rural commercial bank for renovation? Does renovation contract of the decoration company not count?

Guarantee means that you have collateral or a third party with financial resources and repayment ability to guarantee that your loan will not turn into bad debt. Generally, banks should decide whether to issue loans according to the materials submitted by you, and it is normal to need collateral or third-party guarantee, otherwise, how can banks ensure that they can recover the lent money on time? The contract of the decoration company can only prove that the way you use the money is reasonable, but if you don't repay on time, the decoration company won't repay for you, and the bank can't claim a loan from the decoration company according to your renovation contract. Therefore, you need to issue collateral yourself or be guaranteed by a third party to meet the loan procedures.