What Is a Secured Personal Loan?

Guaranteed loans are loans made on the condition that a third party provides corresponding guarantees to the borrower. The guarantee may be a guarantee of a person or a guarantee of a substance. A person's guarantee refers to a guarantee document issued by an economic entity capable of repayment. When the borrower is unable to perform the loan to repay the principal and interest of the loan, the guarantor assumes the responsibility to repay the principal and interest of the loan. The security of a property is guaranteed by a specific physical object or a certain right. Once the borrower fails to perform, the bank can ensure that the creditor's rights are not lost by exercising the right to the property. ^[1]

Secured loan

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The state has promulgated various policies to support the development of SMEs, and guarantee companies that mainly provide guarantees for SMEs also have certain support policies. Not long ago, the Ministry of Finance and the Ministry of Industry and Information Technology issued Caiqi [2008] No. 235 "Notice on Doing a Good Job in the Subsidization of Credit Guarantee Business Subsidy Projects for SMEs in 2008", which gave certain guarantee agencies

The guarantor is not eligible for the guarantee. The "Guarantee Law" stipulates that the guarantor must have certain qualifications, and state institutions, schools, kindergartens, hospitals, and other public institutions and social organizations for public welfare purposes may not be guarantors. However, in practice, some loans are guaranteed by state agencies. Because state agencies and public institutions rely on financial appropriations for expenditures, the assets they own are not authorized to deal with. In fact, such guarantees have become invalid guarantees.

The guarantor does not have the ability to guarantee. Although the guarantor in this type of loan is not a state organ, institution, or social organization, it seems that it has qualified guarantee qualifications, but it does not have the guarantee ability in essence. The "Guarantee Law" provides that

In view of the problems in the above secured loans, banks and relevant departments need to implement the "

Eligibility for a home loan guarantee

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Borrowers have mortgages on their assets. Why not borrow directly from banks?

This is because the bank

1. The information provided to the bank must be true, the address and contact information provided must be accurate, and the bank must be notified in time when the change;

2. The use of loans must be legal and compliant, and the transaction background must be real;

3. Choose a repayment method that suits you according to your repayment ability and future income expectations;

4. Apply for the loan amount within your means, and usually the monthly repayment amount should not exceed 50% of the total household income;

5. Read the terms of the contract carefully to understand your rights and obligations;

6. Repay on time and avoid bad credit records;

7. Don't lose the loan contract and receipts. For mortgage loans, don't forget to cancel the mortgage registration after paying off the loan;

8. Advance repayment must be communicated with the bank one month in advance before it can be processed.

(1) Application: The enterprise applies for a loan guarantee

(2) Inspection: Investigate the business situation, financial situation, mortgage assets, taxation situation, credit situation, and business owner of the enterprise, and determine whether the guarantee is preliminary.

(3) Communication: Communicate with the loan bank to further grasp the corporate information provided by the bank and clarify the amount and term of the bank's proposed loan.

(4) Guarantee: identify loan guarantee and counter-guarantee agreements with enterprises, legal procedures for asset mortgage and registration, and sign guarantee contracts with loan banks to formally establish guarantee relationships with banks and enterprises.

(5) Lending: Banks issue loans to enterprises on the basis of reviewing loan guarantees, and at the same time charge guarantee fees to the enterprises.

(6) Tracking: Track the company's loan usage and business operations, and most directly track and examine the company's operating status through the company's quarterly tax payment, power consumption, and increase or decrease in cash flow.

(7) Reminder: One month before the loan repayment, the company will give a reminder in advance so that the company can prepare for the loan repayment in advance to ensure the normal operation of the company's capital flow.

(8) Cancellation: With the bank repayment slip of the enterprise, the mortgage registration can be cancelled, and the guarantee relationship with the bank and the enterprise can be cancelled.

(9) Records: Record the credit status of the loan guarantee, which is divided into four grades: normal, abnormal, overdue and bad debts, and provide credit records for subsequent guarantees.

(10) Filing: The various agreements signed with banks and enterprises, as well as the documents after repayment of loans, and the certificates for lifting guarantees, are archived and sealed for future reference.

According to the new rules, individual entrepreneurs can promote entrepreneurial projects with less than 5 employees and the maximum loan amount is not more than 100,000 yuan; for entrepreneurial projects with 5 or more employees and less than 10 employees, the loan limit can be increased to a single 200,000 yuan; driving employment For entrepreneurial projects with more than 10 people, the loan amount can be increased to a single 300,000 yuan. The maximum per capita loan amount for a partnership or organization to start a business is not more than 100,000 yuan. The term of the loan is two years.

If a small labor-intensive enterprise recruits new employees in that year and signs a labor contract with them for more than one year, according to the number of newly recruited enterprises in the current year, small guarantee loans will be supported at a loan amount of not more than 100,000 yuan per person. If the number of newly recruited employees in the year is less than 30% of the total number of employees, and the contract with the newly recruited employees is more than one year, the loan amount shall not exceed 1 million yuan. In the case of enterprises with less than 100 employees, the number of newly recruited employees in that year reached 30% of the total number of employees, and in the case of enterprises with more than 100 employees, the number of newly recruited employees reached 15% of the total number of employees in the current year, and the contract with the newly recruited personnel was more than one year. The maximum is no more than 2 million yuan. The maximum loan period is no more than two years.