1. Credit does not require collateral and is guaranteed by your creditworthiness. Loans require collateral such as houses, cars, etc.

2. Compared with other bank businesses, the individual project amounts of small and micro enterprise loan business are small and the operating costs are high. Can the costs be effectively reduced? It is the key to developing small and micro enterprise loan business. Extended information

Currently, the credit evaluation and review standards of many commercial banks in my country for small and micro enterprises are still based on the relevant indicators of large and medium-sized enterprises. On the one hand, this undifferentiated credit management model has led to the majority of small and micro enterprises. It is difficult for micro enterprises to meet bank lending standards, and the availability of loans to small and micro enterprises is poor. On the other hand, the development characteristics of small and micro enterprises are not fully considered, and it is difficult to fully reflect the true risk situation of small and micro enterprises.

Reference materials: Small and micro credit_Baidu Encyclopedia