As the economy develops, more and more people need loans to meet their living needs or to start a business. However, some may not have sufficient credit to obtain credit. At that point, finding a guarantor seemed to be a good way to solve the problem. However, the need for the guarantor and the bank ' s requirements for the guarantor also left many puzzled as to whether the guarantor could help the success of the loan

Find a guarantor to make a loan to the bank

First, there was a need to understand the definition and role of the guarantor. A guarantor is a person or institution that provides financial security and credit support to the applicant during the loan process. The presence of a guarantor can increase the success rate of a loan and banks are more willing to grant their loan applications, as the guarantor provides the borrower with financial and credit guarantees. The guarantor should normally have a higher credit rating than the borrower, so that the bank would have a relatively lower risk to the loan. At the same time, the guarantor has a corresponding understanding of the borrower ' s credit background and ability to repay, and can reduce the bank ' s auditing pressure in the course of the loan. It is therefore important for loan applicants to find a credible and over-economically strong guarantor。

However, bank requirements for guarantors are also high in the course of bank lending. Generally, the guarantor must be a citizen or a legal person with full civil capacity and has in his or her name property such as a certain amount of deposit or property. At the same time, the guarantor must have a blood or economic connection with the borrower, so that it has the duty and obligation to guarantee the borrower's ability to repay, in order to be recognized by the bank. Once the guarantor has agreed to provide security for the borrower, the bank is entitled to recover from the guarantor if the borrower fails to meet its repayment obligations under the agreement. Therefore, the choice of the guarantor also needs to be very careful, otherwise it may have adverse consequences for both the guarantor and the borrower。

In addition, it should be noted that, while the guarantor can increase the credit rating of the borrower, not all banks accept the guarantor's loan application. For example, some large banks may use their own wind systems to audit loans, which do not pay much attention to the guarantor ' s weight, at which point the success rate does not necessarily increase even if there is a guarantor. There is therefore a need for some understanding of the bank approval process and risk management requirements when selecting banks。

In any event, finding a guarantor would increase the success rate of a loan application, but the need to select a reputable guarantor and the high level of bank requirements for the guarantor would adversely affect both the borrower and the guarantor. In addition, bank approval processes and risk management requirements need to be analysed to guarantee smooth approval of loans。