Formal loans need to provide corresponding guarantee measures, and mortgage (pledge) procedures need to be registered with national government departments. All contract documents are standard format contracts and format documents.
To determine whether an institution is qualified for lending, it can be determined from the following aspects:
1. Industrial and commercial business license, an enterprise as a legal person or a non-governmental organization with legal lending qualifications. If the business license has a clear business scope and does not clearly indicate the institutions that can engage in lending business, it is not a formal lending institution.
2. Interest rate: the interest rate of all formal lending institutions shall be controlled within 4 times of the benchmark lending rate of the People's Bank of China for the same period, the interest rate of commercial banks shall be within 60%- 140% of the benchmark lending rate, and the interest rate of formal lending companies shall be within 2.8-4 times of the benchmark lending rate, but the interest rate of pawn companies or pawn shops shall not be subject to this standard.
3. Mortgage (pledge) procedures, formal loan projects and mortgage (pledge) procedures are strictly legal and compliant, and must be registered in detail by government departments. Although there is a charge, it is protected by law. If a company promotes unsecured loans, it is likely to be illegal lending or usury. Without mortgage and pledge, there is no formal lending behavior, and idiots lend money to people casually.
4. Deposits, according to the law, no institution except banks can absorb deposits or large-scale financing similar to deposits, which is "illegal fund-raising". When consulting non-bank lending institutions, you can also tentatively ask whether to absorb deposits or raise funds. If there is such behavior, it belongs to informal lending institutions.
5. Other channels, regular enterprises and institutions that can lend money have been registered with the People's Bank of China and the local economic commission. If you are not clear about the above four situations, you can go to the local People's Bank and the Economic Commission for consultation. Failure to register for the record is an informal loan company or institution.