Guarantee loans

A bank’s promise of payment.

Guarantee loans are a special type of loan under which the loan amount is not made available as cash. The underlying principle of a guarantee loan is the promise of the guarantor promises to pay the amount owed in the event of borrower default.

Here are a few examples of guarantee loans:

  • rental deposit guarantee,
  • advance payment guarantee ,
  • performance bond,
  • payment guarantee,
  • cover and retention guarantees.

Guarantee loans require certain collateral based on the amount of the guarantee loan requested. A guarantee commission and processing fee are charged for issuing a guarantee loan.