Guaranteed loan refers to a loan method in which the guarantor guarantees the borrower to repay the principal and interest of the loan on time with its own funds and legal assets.

When the lender fails to repay the principal and interest of the loan on time, the guarantor needs to bear joint and several liability for the performance of the guarantee obligation.

It should be noted that in the form of guaranteed loans, the guarantor bears irrevocable joint and several liability for the full amount.

In other words, when the lender fails to repay the principal and interest of the loan on time, the guarantor must be responsible for the principal and interest of the loan and the related expenses caused by the loan contract, and also bear joint and several civil liabilities related to the loan contract.

Compared with other loan methods, guaranteed loans generally do not need to go through cumbersome procedures such as registration and evaluation, so the process is relatively simple.

In the specific secured loan process, the lender can choose one guarantor or multiple guarantors; On the premise that the guarantor agrees to the long-term guarantee, the guarantor may sign a contract to ensure that it will not go through the relevant guarantee procedures during the guarantee period of the loan contract.

Since the guaranteed loan mainly provides financial support for the customer's production and business activities, the loan term is clearly limited, and the loan grace period (referring to the time from the loan disbursement to the first repayment) shall not exceed 3 years, and the loan term shall not exceed 7 years.

In addition, the currency of the guaranteed loan can be USD or RMB. Guaranteed loan interest rates need to be strictly adhered to the lending interest rate policy set by the central bank.

For medium and long-term guaranteed loans, the loan interest rate needs to be set year by year according to the provisions of the loan contract, that is, within one year of the loan contract taking effect, the interest rate shall be implemented in accordance with the loan contract and will not change with the adjustment of the statutory interest rate; One year after the loan contract takes effect, the loan interest rate needs to be adjusted on a case-by-case basis.

Applicants need to meet the conditions shown in Table 3-4 in order to make a secured loan.

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