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Digital Loans
Credit Risk Guarantee Home Loans: Lower-Income Housing Finance Explained
How a credit guarantee changes what a lender is willing to offer borrowers with limited collateral or income documentation, and who this category of home loan is designed for.
Trade Finance
MT 767 Explained: Guarantee Amendment
How changes to an already-issued bank guarantee or standby LC — a new amount, extended validity — are communicated.
Trade Finance
MT 760 Explained: Guarantee / Standby Letter of Credit
How a bank issues an independent guarantee or standby LC — a promise to pay only if the applicant fails to perform.
FAQs
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FAQ
Does CGTMSE cover mean the loan itself is free?
No. CGTMSE only removes the collateral requirement by providing the bank a guarantee cover — the borrower still repays the loan with interest as per the sanctioned terms.
FAQ
Is a Letter of Credit the same as a Bank Guarantee?
No. An LC is a primary payment mechanism used to settle a trade, while a Bank Guarantee is a secondary commitment that is only invoked if the applicant fails to perform an obligation.