loan rate

Generally speaking, the interest rate of small loans will be higher than the bank interest rate; The interest rate of private lending is determined by both parties through consultation, and there is no fixed interest.

danger

Due to the constraints of supervision and application procedures, the risk of microfinance will be smaller. The cost of private lending itself is high, the interest is generally not low, and high risks will follow.

Loan speed

Due to procedural reasons, compared with private lending from person to person, the speed of microfinance is naturally not as fast as that of private lending.

Loan threshold

Considering the safety of funds, although the conditions of bank loans are much looser, they also need a certain threshold; The threshold of private lending is relatively low, and most of them borrow through acquaintances.