What is a credit guarantee loan company?

A secured loan company refers to a non-bank financial institution established in rural areas by domestic commercial banks or rural cooperative banks in China to provide loan services for county farmers, agriculture and rural economic development. It is a limited liability company fully funded by commercial banks or rural cooperative banks.

legal ground

Article 2 of the Measures for the Administration of Loan Guarantee of Industrial and Commercial Bank of China

The term "loan guarantee" as mentioned in these Measures refers to the legal act that banks require borrowers to provide guarantees when granting loans to ensure the realization of loan claims.

Article 5

These Measures shall apply to domestic enterprises, institutions, legal persons, other economic organizations and citizens who apply for local and foreign currency loans from China Industrial and Commercial Bank. These Measures shall apply to loans that need to be secured.

Article 6

No guarantee is provided between branches of China Industrial and Commercial Bank and between branches and affiliated companies.

Article 7

The ways of loan guarantee are: guarantee, mortgage and pledge. These guarantee methods can be used alone or in combination.

Article 2 of People's Republic of China (PRC) Company Law

The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.