1. Microfinance guarantee fund refers to the funds stored in the special account of the handling bank and closed for operation, which are specially used for guarantee institutions to provide guarantees for borrowers to lend to the handling bank.

2. If a professional guarantee company has established a business cooperation relationship with the loan bank, the secured loan must be deposited with the loan bank. Generally speaking, the deposit is 00%-20% of the 65438+ loan. The specific deposit depends on the cooperation agreement between the guarantee company and the bank. If the customer can't repay the loan, the bank will deduct it from the deposit of the guarantee company. In addition to recovering loans, some banks should also recover them from guarantee companies.

3. If the guarantee company has not established a cooperative relationship with the loan bank, the bank may require the guarantee company to pledge in full.

4. There is also a security fund. Protection fund is a collective investment plan, which guarantees investors to get a predetermined amount on a specified date. The guarantee amount may include a certain percentage of the principal. Some guarantee funds provide additional rate of return guarantee higher than the principal.