The application threshold is much higher than that of microfinance companies. Enterprises and corporate legal persons need to have high credit records, otherwise it will be difficult to pass the examination. However, the requirements of microfinance companies in terms of thresholds are more relaxed.

Loan speed

The biggest difference between banks and microfinance companies is the speed of lending. Generally speaking, a loan in a bank needs to go through many procedures of mortgage and verification, not to mention the complicated process and numerous procedures, and it takes about 40 days to go through the whole procedure; The operating procedures of small loan companies are very simple. It only needs to fill in personal information through the loan APP, and the loan process can be completed without leaving home, usually within 3 working days.

loan rate

Compared with other types of loan companies or institutions, the interest rate of bank loans is lower, which can reduce the repayment cost for individuals or small and medium-sized enterprises; Due to the low application conditions of microfinance companies, bad debts are prone to occur, which has a great impact on the risks of microfinance companies and the normal operation of the capital chain. So in order to control the risk, the interest rate was raised.