The difference between inclusive finance and ordinary guarantee

The difference between inclusive finance and ordinary guarantee lies in the different ways of risk sharing.

Inclusive finance is a financial service model based on small loans, which is characterized by spreading risks to multiple borrowers and spreading risks through large-scale small loans. Ordinary guarantee is a kind of guarantee mainly provided by individuals or enterprises, and the risk is mainly borne by the guarantor.

Inclusive finance mainly aims at small and micro enterprises and low-income people, which are difficult to be covered by traditional financial institutions, to help them solve the financing problem. Ordinary guarantee is more for individuals or enterprises with certain economic strength, providing larger loans and guarantee services.