What is the meaning of Guarantee Fee?

Guarantee Fee is a fee charged to the borrower by a guarantee agency for each loan that it guarantees. Usually, the lender reduces a borrower's disbursement by this amount and remits the fee to the guarantor. This fee can be no more than one percent of the loan's principal. Also known as insurance fee.

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APABarry Goldsmith. (2010). guarantee fee. Retrieved September 23, 2026, from http://smartdefine.org/guarantee_fee/definitions/1155226
ChicagoBarry Goldsmith. 2010. "guarantee fee" http://smartdefine.org/guarantee_fee/definitions/1155226 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, guarantee fee, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/guarantee_fee/definitions/1155226>.
MLABarry Goldsmith. "guarantee fee" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/guarantee_fee/definitions/1155226>