Is it true that the guarantee company guarantees the loan?

Guarantee companies, specifically enterprises or individuals, play the role of intermediary guarantee when applying for loans from banks. If a guarantee company has a credit line in a bank, it must pay a certain deposit to the branch where the bank is located before it is qualified to provide such intermediate guarantee services for customers and banks. Margin is generally a fixed enterprise deposit transferred from the company account of the guarantee company to the bank and frozen in the local branch. Generally, a part of the shares of the guarantee company will be set aside as the deposit of the bank. If the customer breaches the contract within the guarantee period, the guarantee company providing the guarantee service will pay this part of the fine first, and then withhold and remit it to the bank.

Our business mainly includes SME loans, commercial loans, personal customers, second-hand housing loans, mortgage loans, consumer loans, car loans and mortgages, as well as other loan intermediary guarantee businesses within the scope permitted by law. At present, loans for the sale of second-hand houses in most cities are basically completed with the participation of guarantee companies. Their main services are: contacting loan banks, loan customers, evaluation companies, housing brokerage companies, real estate customers and the intermediate process of loans. For example, face-to-face signing of customers, collecting relevant information of buyers and sellers, submitting loan procedures to the bank for approval, accompanying the bank to face-to-face signing of customers, contacting the evaluation company for evaluation, accompanying customers to transfer ownership in the real estate trading center, and collecting new house certificates and other rights certificates with bank staff and customers. The guarantee will not be terminated until the customer can repay the bank normally within two years.