In today's society, there are still many people with low credit scores and insufficient loan quotas. In order to solve this problem, microfinance put forward a new concept of microfinance amplification. By increasing the term of guarantee or loan, the credit limit of borrowers with weak credit background or low income can be effectively increased, and better loan effect and service can be achieved.

Advantages and application scenarios of microfinance amplification

The advantage of enlarging microfinance is that it can use certain guarantee power to increase the borrower's credit limit and let him get more loan funds. At the same time, the adjustment of the loan term can also ease the pressure on borrowers and improve their repayment ability. Microfinance amplification is suitable for small consumption or emergency liquidity. For example: small enterprises with poor personal credit and insufficient guarantee conditions.

Matters needing attention and risk prevention of microfinance amplification

The enlargement of small loans requires sufficient guarantee and reasonable loan term to ensure that borrowers can repay their loans smoothly. At the same time, the qualifications of borrowers and guarantors are also very strict to avoid risks. When using micro-credit amplification, borrowers should also be fully aware of their repayment ability and not blindly extravagant, otherwise it may offset the role played by micro-credit amplification.