1, see if there is a license plate.
Under normal circumstances, reliable small loan companies will hang their business licenses and loan business licenses in conspicuous places of the company. In addition, reliable microfinance companies can check the certification status online. If you find that the microfinance company has no license, it must be unreliable.
2. Look at shareholders
The stronger the shareholders behind the microfinance company, the higher the reliability. If the shareholders of a microfinance company are central enterprises, large state-owned enterprises and enterprises with high social visibility, then this microfinance company is still relatively reliable.
3. Is the charge open and transparent?
Generally speaking, more reliable small loan companies will specify the loan fees, with an annualized rate of less than 36%. If a small loan company intends to cover up its charges, then this company is not reliable.
Extended data
Many financial institutions and lending companies carry out joint loan business model, and they do not have certain "online risk control technology", so they use lending companies to do "risk control" for themselves. However, general loan companies and financial institutions have different risk control standards and different business roles, which may easily lead to "risk control failure" and cause large-scale default risk.
The Beijing Banking Insurance Regulatory Bureau issued the Notice on Regulating the Cooperation between Banks, Financial Technology Companies and Internet Insurance Business (hereinafter referred to as the Notice), which listed "online loan cooperation" as the primary position of key risk prevention and control, and proposed to strictly implement the principle of independent risk control to prevent credit funds from illegally flowing into peer-to-peer lending platforms, real estate markets and other fields.