Guaranteed Loans From the Government
Thursday, January 6, 2011
Guaranteed Government Loans
A government guaranteed loan are loans that lending institutions offer with an agreement that another government agency will pick up the guarantee part of the loan if the person getting the loan fails to pay. These loans have been secured by a specific institution and are for specific reasons and for specific people in certain groups.
These loans are offered to give people who do not have access to large sums of capital,
be given the opportunity to expand their businesses. A good example of one of these groups are farmers who do not have much capital due to lack of collateral. A guaranteed loan helps these farmers get the help they need and help them increase production. Many of these groups of people are essential to the nation and make them more productive.
Without the guaranteed loans most banks would not have made this loan because of lack of assets to serve as collateral. The risk to the bank is eliminated by the government guaranteeing the loan to be paid no matter what. There are a number of these type of loans being offered today. The most popular ones being student loans, small business loan programs and the aforementioned agricultural loan programs. Under these types of loans the government promises to picks up the balance of the loan if the borrower fails to pay by the due date. These loans all have different qualifications and standards that have to be meet in order to qualify.
To best qualify for a guaranteed loan from the government the borrower might consider an agent to help explain the little small details of the loan being offered. There are some very good credible online sources as well to help you with your loan search.
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Labels: Government, Guaranteed, Loans
