Extended information:
Loans, meaning banks, credit unions and other institutions to lend money to the units or individuals who use the money, usually stipulated the interest rate, repayment date. Loan in the broad sense refers to the loan, discounting, overdraft and other lending funds in general. Banks through the way of loans will be concentrated money and money funds put out, can meet the expansion of social reproduction on the need for additional funds, promote economic development, at the same time, the bank can also be obtained from the loan interest income, increase the bank's own accumulation.
Internet lending, the foreign name is Internet lending, p2p network lending is the abbreviation of network lending, including individual network lending and commercial network lending. p2p network lending refers to the direct lending between the individual and the individual realized through the Internet platform. It is a subcategory of the Internet Finance (ITFIN) industry. The number of online lending platforms grew rapidly in 2012 in China, with about 350 more active ones so far, while the total number as of the end of April 2015 had been 3,054.
In September 2019, the Leading Group for the Special Remediation of Internet Financial Risks and the Leading Group for the Special Remediation of Online Lending Risks jointly issued the Circular on Strengthening the Construction of the Credit Collection System in the Field of P2P Online Lending, which supports the access to the credit collection system by operating P2P online lenders.
Network lending includes individual network lending (i.e. P2P network lending) and network microfinance. Individual network lending refers to direct lending between individuals and individuals realized through the Internet platform. The direct lending and borrowing behaviors occurring on the individual network lending platform belong to the category of private lending and borrowing, and are regulated by the Contract Law, the General Principles of Civil Law and other laws and regulations, as well as the relevant judicial interpretations of the Supreme People's Court.
Network lending is different from financial institutions, financial institutions are "net capital" management, whether it is a bank or a trust company to have their own registered capital, its registered capital is less than a few hundred million, more than one billion or even a few billion, and the registered capital is not used to operate, but is a kind of guarantee, is a kind of "threshold".
The inherent capital of the online lending platform is small, and it can't bear the large amount of guarantee, and it is difficult to get a solution once there is a large loan problem. And some borrowers are also for the purpose of fraudulent loans, and some of the purpose of the lending platform creators are not pure, with the money to escape the case has happened repeatedly.