1. Transfer the risk, transfer all the bad debt risk of the loan to the guarantee company, and then give it a certain rebate, that is, as long as the loan underwritten by the guarantee company, the bank does not have to worry, because even if it cannot be recovered. There are also guarantee companies to pay the bill.
2. As for the deposit, the credit granted to you is 1: 10. It seems loose, but don't ignore the risk of the guarantee company, and be sure that the borrower will provide it with sufficient collateral, which means that it is impossible to get back every sum. There is a problem of elasticity. If there are bad debts, the bank will deduct the deposit, and the guarantee company will recover and dispose of the collateral. If the underwriting amount exceeds the credit granted by the bank, the deposit will continue to be paid, and the ratio of 1: 10 will always be maintained (not 1: 10 in some places).
Banks are very strict in choosing partners. Without strength, they can't do banking at all. Generally speaking, even if there are millions of bad debts, it is a piece of cake for guarantee companies that can cooperate with banks. Banks are not afraid at all. Even if they want to break the contract, they will be sued and you will lose. Fighting with banks usually doesn't end well. Of course, most guarantee companies are not stupid enough to go to court with banks, open their doors to do business and win-win cooperation. The bank takes the lead, and the guarantee company has some soup.
The above is my personal opinion, I hope you can be satisfied and understand.