(1) A formal loan company is supervised by the CBRC. Only after obtaining a formal loan company license can it issue a certain proportion of loans within its registered capital.

(2) Irregular, mostly in the name of investment companies or financial companies. The source of funds and profit model are earned by high interest rates. Strictly speaking, they are all illegal fund-raising.

Microfinance is a comprehensive consumer loan with individuals or enterprises as the core. The loan amount is generally more than 1 1,000 yuan and less than 200,000 yuan. The general process needs to be guaranteed, and microfinance is an extension of microfinance in technology and practical application.

Microfinance in China: It mainly serves agriculture, rural areas and small and medium-sized enterprises. The establishment of small loan companies has rationally pooled some private funds, standardized the private lending market, and effectively solved the financing difficulties of agriculture, rural areas and small and medium-sized enterprises. At present, there are also personal micro-loans for office workers, generally ranging from 1 1,000-5,000 yuan. Most of them don't need mortgage, but the credit and information review is strict.