1, low-income groups and micro-enterprises are the main customers.

The target customers of microfinance companies are often excluded from the formal financial system, because they can't provide the collateral required by formal financial institutions and can't meet the formal loan approval standards. Small loan companies came into being to provide financial services for low-income groups and micro-enterprises.

2. Simple application and quick loan.

Traditional financial institutions such as rural credit cooperatives, postal savings banks and agricultural banks follow the general process of "pre-lending investigation, in-lending review and post-lending management", which leads to slow lending, complicated procedures and long time.

Although microfinance companies all over the country basically refer to the above model, relatively speaking, the approval procedures of microfinance companies are more convenient, quick, simple and efficient. The investigation, approval and issuance of a loan takes only half a day at the earliest, and generally takes only two days at the most. It can be said that "short, flat and fast" is the main feature of loan issuance by microfinance companies.

3. Flexible loan interest rate

The loan interest rates of microfinance companies are generally higher than those of financial institutions and non-governmental organizations, lower than the average level of non-governmental lending interest rates, and the interest rate distribution has no obvious grade characteristics, but the interest rates of agricultural loans and aquaculture loans are obviously lower than those of industry and commerce, transportation and service industries, and the interest rates of commercial loans are lower than those of industrial loans.

However, the law stipulates that "small loan companies shall operate according to the market principle, and the upper limit of loan interest rate shall be released, but it shall not exceed the upper limit set by the judicial department, and the lower limit shall be 0.9 times of the benchmark loan interest rate announced by the People's Bank of China, and the specific floating range shall be determined independently according to the market principle". Among them, according to the relevant judicial interpretation, the upper limit of interest rate should be 4 times of the bank's loan interest rate of the same grade in the same period.