The China Banking Regulatory Commission and the People's Bank of China jointly issued the Guiding Opinions on the Pilot Project of Small Loan Companies (Yinfa [2008] No.23, hereinafter referred to as the Opinions), which put forward more specific and clear guiding opinions on the organization of small loans. (1) properties and compilation. Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business. The registered capital of a limited liability company shall not be less than 5 million yuan, and the registered capital of a joint stock limited company shall not be less than/kloc-0.00 million yuan. (2) Sources of funds. The sources of funds for microfinance companies are mainly capital paid by shareholders, donated funds and integrated funds from no more than two banking financial institutions. However, the balance of the incorporated funds shall not exceed 50% of the net capital. (3) the use of funds. Small loan companies should adhere to the principle of "small amount and dispersion" in issuing loans. The loan balance of the same borrower shall not exceed 5% of the net capital of the microfinance company. The upper limit of the loan interest rate shall be released, but it shall not exceed the upper limit stipulated by the judicial department, and the lower limit shall not be less than 0.9 times of the benchmark interest rate. (4) supervision and management. Where the provincial government can make it clear that a competent department (financial office or relevant institutions) is responsible for the supervision and management of small loan companies and is willing to bear the responsibility of risk disposal of small loan companies, it can carry out pilot projects to set up small loan companies within the scope of this province (autonomous region, city) and county. To apply for the establishment of a small loan company, after being approved by the provincial competent department, it shall apply to the local industrial and commercial department for registration, and submit relevant materials to the public security organ, the banking supervision department and the People's Bank of China for supervision and inspection. (5) Development direction. Small loan companies that operate in compliance with the law and have no bad credit records can be transformed into village banks on a voluntary basis according to the Guidelines for the Examination and Approval of the Establishment of Village Banks and the Interim Provisions on the Administration of Village Banks.