According to statistics on microfinance companies released by the central bank, there are currently 7,333 microfinance companies nationwide***. You may wonder why there are so many. In fact, there has been a steady increase in microfinance companies. This one still has a license. In fact, last year there were many companies that did not have a small license. Many companies or people with capital raised a portion of their funds and controlled their risks, and they took out loans to set up companies that did not apply for a small license, but they also took out loans. Even if they have been in the industry for more than a decade, they are not all small loan companies.

There are still a lot of microfinance companies.

After 2012, microfinance companies mushroomed, as did online lending P2P during the same period. There were 6,000 or 7,000 online lending P2P companies in the same period. But why are there still more than 7,000 microfinance companies and only 15 online loan P2P companies left? After all, I think it should be cost and risk control!

Net lending is essentially an intermediary. He had to finance and lend. In order to attract enough money, he had to promise very high interest rates in order to bring together people's dispersed funds. His financing costs were particularly high. There are many P2P lending companies with 10% annualized interest rates, and fierce competition in the industry gives higher interest rates than one company would give. Their financing costs will be particularly high, get the money to be put in a hurry, because not put to pay a very high interest cost. So to attract enough borrowers. If the interest rate is too high, people won't come, and if the interest rate is too low, there's no money to be made. Then add the cost of promoting customers. The cost is very high. There is little to no risk control and disputes arise when they are late. There are simple platforms that do not attract deposit customers, and there are padded but very high risk. There are all kinds of violations, and the misappropriation of funds is very serious. The result, predictably, was one storm after another, one run after another. So far, only 15 left.

Internet small loan license approval is still quite difficult.

Generally speaking, the bank is through a very low annualized interest rate to get public **** funds. Even if you deposit for 5 years, most of them will not exceed 5% annualized interest rate. Microfinance companies can get funds from banks at low interest rates and then lend them at high interest rates. That is, they can absorb a portion of society's funds at low interest rates. For example, the current 7-day annualized interest rate of the balance is 2.06%, but many borrowers are lending at a rate of 5,000 a day, which translates into an annualized interest rate of 0.05*365=18.25%. Nine times the profit rate.

The profiteering is maddening.

Marx's Capital, chapter 24, "the so-called primitive accumulation," section 7 of the notes have this passage. It reads, "The Quarterly Reviewer says that capital shuns turbulence and strife, that it cowers. This is certainly true, but it is not the full truth. Just as it is said that nature is afraid of a vacuum, so capital is afraid of a situation in which there is no profit or too little profit. Once there is a proper profit, capital is courageous. As long as there is 10 percent profit, it is used everywhere; 20 percent, it is hilarious; 50 percent, it creates positive risks; 100 percent, it makes people defy all laws; and 300 percent, it makes people not fear crime or even the danger of being hanged. However, borrowing money and microcredit loans would be more than 900 percent profitable if you pay back $5,000 on a daily basis, and more than 300 percent profitable even if you pay back $3,000 or $4,000 on a daily basis; capital is profit-driven. No wonder the major companies are fighting for small loan licenses.

Especially for the offline market microfinance companies, the interest accrual is equal principal, equal interest. Then in the past there were various fees, contract amounts, inspection fees and so on. Insurance policies such as P&C. Whitney and Dida basically required insurance. And the base rate at the time was about 2:3, and you'll note that this equals 2:3 is a completely different way of calculating interest than a bank. If nothing else is involved, a simple calculation of 2 and 3 minute interest equals equal cost. Their annualized interest rate is a whopping 49.68%, even though their cost of financing is 10%. Their profit is still over 300%.

Of course their gross profit is high, but their net profit is not that high. Because their customer base is basically customers that banks can't do or consumer finance can't do, they are slightly less qualified overall. Although their interest rates are high, the overdue rate of their customers is relatively higher than that of banks. Because most of them are credit loans, once they are overdue, the interest may not be earned and the principal is lost! Some microfinance companies have gone out of business simply because the overdue rate was too high!

Strict risk control is the guarantee of the survival of small loans.

Microfinance is a comprehensive consumer loan centered on individuals or businesses, mainly serving small and medium-sized enterprises and the working class. For business owners, the amount of personal small loans offered by office workers generally ranges from 1,000 yuan to 300,000 yuan, because no collateral is required, pure credit, the loan amount is mostly 100,000 yuan. And credit and information review is strict. Like offline microfinance companies, they generally have to go to the next household to visit and verify the specific situation. The wind control process is still relatively strict.

I once did a period of small loans, there are more than 30 customers. In the end, only one customer was approved, and the amount was only 40,000 dollars. Most of the customers with houses and cars were rejected because they did not have enough direct scores. Generally speaking, the credit score of small loans is more lenient, but it depends on the actual repayment ability. You can only be approved if you can prove your repayment ability and have a regular income. If not, you will be denied a loan even if you have a house and a car! The process of getting a small loan is no less complicated than that of a bank, and in some cases, even more complicated. After all, bank loans generally only look at the central bank credit, and offline micro-credit will also check the big data, check the civil affairs system, the wind controller will be on-site inspection, and then there is also a series of processes such as electric verification and face-to-face signing.

The size of the industry is still steadily rising.

Generally speaking, the relatively low financing costs of microfinance companies, coupled with strict risk control, have resulted in a higher survival rate than that of P2P lending companies, and thus a large number of microfinance companies continue to serve small and medium-sized enterprise owners and the working class. Microfinance companies are also an effective complement to banks and consumer finance. Although the industry is not particularly good at the moment, it should still exist.

Related Questions and Answers: 15 online lending is which 15 15 online lending: credit card, digging wealth, the people of the gold service, copper board street, there is a financial network, top road gold service, zhecai financial management, love loan network, copper cattle poly finance, 51 provident fund, micro gold stone, poly car finance, money within the help of the name of the financial, agate bay. First, network lending refers to the direct lending between individuals and individuals realized through the Internet, which is characterized by a low threshold, fast disbursement, simple operation, the adoption of big data risk control mode for financial institutions to do advance user review and screening, for the bank to recommend high-quality users, greatly reducing the bank audit of small and medium-sized enterprise user credit situation of the difficulty and workload. Today we will share with you its application process. The process of applying for an online loan Applying for an online loan is not really about applying for many online loans at once, as the rate of payment for such an application is not very high on average. Instead, the correct method should be to apply one by one slowly, and then apply for the next one when the result of the previous one is out. Second, if you are rejected, first check your application materials to think about what may have gone wrong. First apply for online loan A, if rejected, to see in which step was rejected, and then carefully check the information involved in that step, to pick out the possible problems, to see if there is room for optimization; the next step and so on the optimization is completed, and then go to apply for online loan B, so that your success rate must be greatly improved. Of course, the choice of online lending mouth is crucial, it is also important to choose a reliable mouth that suits you, in general, it is vital that you go first to operate a large platform, stable mouth is vital, the old mouth and the new mouth first choose the old mouth, because the old mouth has experienced the precipitation of time, the open area has also increased, the new mouth is generally unstable, and the rate of money down is low, so that the order is very important. Third, the application of online loan notes (a) cell phone number and address book Whether you submit a loan application to any loan company, you need to provide a cell phone number, the purpose is to be able to get in touch with the applicant at a specific time. 1. The cell phone number must be real name It goes without saying that this must be authenticated by the real name of the person. If you don't have a real name, it's best to apply for a real name; in addition, the longer the cell phone number is used, the more favorable it is to apply for a loan. 2. Address book without abnormal information We often receive a variety of advertising information, sometimes these ads do help, it will be retained and give notes, such as "loan", "lender so-and-so", "loans The information is considered by the lending company to be a part of the loan. However, this information in the eyes of the loan company is a minus point, you will feel that you are particularly short of money, which will lead to a lower rate of approval. Therefore, when filling out the cell phone number, you can address book contains these keywords contact processing, to avoid unnecessary misunderstandings. 3. Android phone users pay attention to check the text message Android phone text messages can be read by a third party, while Apple phones protect privacy very thoroughly, any third party can not read the text message. Therefore, Android phone users are exposed to more information in front of the online loan, especially pay attention to the following information. First, the text messages of other loans, repayment reminders, collection type, etc., these belong to the minus item. Second, the bank credit card of all kinds of text messages. The number of credit cards presented to the online loan in the mailbox, and the number of credit cards involved in the text message, must not be too different. Related Q&A: will online lenders give up on collections after a year of non-payment?

My online loan has been overdue for more than 2,000 days, and I still often receive text messages from the collection, and even some online lending companies have gone out of business and are still collecting.

Last month I received a collection of text messages, I was particularly puzzled, because I went online to check, the collection of my company, he has long been closed, I do not know what kind of people to find me to pay back the money.

And I've tried to download the app to pay off that debt, because when I didn't pay it back, the interest in it was more than the principal, and it was several times more.

In the beginning, when it was still open, I went to communicate with the other party, and never got a good deal because I wanted them to reduce my interest and default.

However, I didn't expect that when I had given up, he took the initiative to come to me, and I thought at the time that after more than a year of overdue, the other party would not be able to collect on me.

This is all just my own personal opinion, because even if the other party's company has gone out of business, they will still transfer the debt and sell it to other third party companies for collection.

My online loan has been overdue since then, I began to attract the harassment of the collectors, almost every day, after more than two months, I directly uninstalled the software app, because I think I was bombarded with all this is because the app has a location function.

And the APP also reads my address book, but I didn't realize that at that time, when I was angry for the 1st time, they had already stowed it away and I thought it was because of the APP.

I uninstalled the software and never downloaded it back because every time the other party was collecting on me, I didn't have the money to pay it back, and the software above the interest rate was rising every day, and I could see that my head hurt a lot.

Until after more than half a year, I began to save a little money, ready to find each other negotiation to pay off the principal, because I already do not want to let each other has been harassing me, when I downloaded the software back to find that the amount of money on it has exceeded their imagination.

More to negotiate the other side can not budge, and finally I directly pull the collection of the phone into the blacklist, I think as long as after a period of time, should he will not be on my collection.

Because I changed my phone number, after a few months there were no collection calls, living quietly, I had long forgotten about my loan.

After more than a year, I suddenly remembered that I had such an app on which I had taken out a loan, and when I tried to download the software, I could no longer find the app online.

I went back to the Internet to check the relevant information about that APP, however, I realized that the original because he illegally charged users interest and involved in the phenomenon of terrorist collection, by the relevant units to investigate and deal with.

I was very happy at the time because I thought I wouldn't have to pay back the money I owed.

However, I didn't realize that after a few months or so, I would receive, one after another, messages about this online lending company, and not only sending text messages, but also sending envelopes.

Sent the information about the arrears of money to the unit where I work, as well as the village council, but also on my cell phone step by step to fall attack, at first said that the collection of cases against me.

Then again, my property for the preservation, but also in my character control, in order to prevent the escape, and finally said the date of the court date in which day, because I have not responded to the other side, the other side of the set of plays finished and then repeated to come again.

While it is only right that debts should be repaid, and the other party illegally charged high interest and default fees, and could not negotiate repayment, even if the other party is not prepared to sue me, I intend to sue him.

However, after I told him what I had in mind, the third-party collection agency, fed back this matter to their unit, and finally they called me with the unit's phone number and told me that I only needed me to pay back the principal to settle it.

After I double-checked, I ended up paying off this debt, because I was worried that these were collection schemes, so I was very careful and cautious.

Whether or not you give up on an online loan after a year of no collections, this is simply not true.

When you borrow money with the online lending company, the two sides have formed a contractual relationship, this contract has legal effect, except that the online lending company is often the use of yin and yang contract.

And they will also leave a hand, in the face of you will charge high interest, when it is really about to go to this step of the law, he took out another kind of contract, interest are legal, but are capped.

Even if the online lending company will no longer collect on you, the online lending company will package your debt to a third party, who in turn will inquire about collection through their own technical means, and may even sue you.

Debt repayment, do not hold the "with the ability to borrow why to pay" this kind of mentality, should be positive initiative to negotiate, looking for more opportunities to make money, as soon as possible to pay off the debt, rather than speculation, thinking of not need to repay the stupid topic.