Legal analysis: It fully embodies the principle of "small amount and dispersion" of small loan companies, and serves "agriculture, countryside and farmers" and small and medium-sized enterprises. The credit granted by a microfinance company to the same lender shall not exceed 5% of the company's net capital, and the credit balance to a single group customer shall not exceed 20% of the net capital. At the same time, in order to strengthen the monitoring and management of the capital flow and liquidity of microfinance companies, microfinance companies "mainly reduce cash transactions through settlement channels such as transfer or bank cards".

Legal basis: Guiding Opinions on the Pilot Project of Small Loan Companies Article 3 Sources of Funds for Small Loan Companies The main sources of funds for small loan companies are capital paid by shareholders, donated funds and integrated funds from no more than two banking financial institutions. Within the scope prescribed by laws and regulations, the capital balance obtained by microfinance companies from banking financial institutions shall not exceed 50% of the net capital. The interest rate and term of the capital will be determined by the microfinance company and the corresponding banking financial institutions through independent consultation, and the interest rate will be determined based on the "Shanghai Interbank Offered Rate". A small loan company shall apply for a loan card from the branch of the People's Bank of China where it is registered. Banking financial institutions that provide financing to microfinance companies shall timely submit financing information to the local branches of the People's Bank of China and the dispatched offices of the China Banking Regulatory Commission, and track and supervise the financing use of microfinance companies.