According to the Contract Law, Electronic Signature Law, Several Opinions of the Supreme People's Court on People's Courts Handling Lending Cases and other laws and regulations, it is clear and legal for Yun Xin Huitong to provide intermediary services for private lending of both investors and borrowers. All data messages and electronic contracts of investors, borrowers, guarantors and Yun Xin Huitong on Yun Xin Huitong platform are legal and valid legal texts after confirmation by all parties. Yun Xin Huitong adopts a self-developed P2P clearing system and a special fund settlement platform for remittance to ensure the principle of "no deposit of funds" and physically ensure the safety of investors/borrowers' funds; At the same time, Yun Xin Huitong adopts financial institution account security encryption technology to strictly protect the information security of investors/borrowers.
The clearing and settlement system automatically opens an independent third-party account for each investor/borrower in the remittance world, and all the loan funds are deposited in their respective third-party accounts, which can only be operated by users themselves; After the loan is full, the funds will be directly transferred from the lender's third-party account to the borrower's third-party account, without going through Yun Xin Huitong, and Yun Xin Huitong will only review the information flow. Guarantor mechanism is a very important part of Yun Xin Huitong open platform business philosophy.
Under this mechanism, professional guarantors will conduct due diligence and evaluation on borrowers before lending, provide perfect risk control measures, and undertake full and full guarantee obligations for all loan projects they guarantee.
For the borrower, a qualified guarantor is required to conduct a credit investigation. After the qualified guarantor has made a guarantee commitment and risk control (such as counter-guarantee, etc.), the borrower can borrow money from investors through Yunxinhui. If the borrower fails to repay the loan, the guarantor will pay the overdue principal and interest to the investor at the first time, and then the guarantor will recover from the borrower. According to the law, the interest rate of private lending shall not be higher than 4 times the interest rate of similar loans of banks (that is, the annual interest rate shall not be higher than 24%), and the excess shall not be protected. The expected annualized rate of return of all borrowing targets of Yun Xin Huitong is below 24%, which fully protects the interests of all investors by law.
On the basis of legality and rationality, Yun Xin Huitong chooses investment projects with controllable risks, designs reasonable compound interest investment schemes for investors, and enables investors to obtain better investment returns. "What you invest is what you get", after the borrower repays the loan, all the interest arising from the investor's investment belongs to the investor, and the borrower's compensation for early repayment and penalty interest for overdue repayment also belong to the investor.
Yun Xin Huitong adheres to the concept of "free trade" and insists on not charging handling fees, consulting fees and management fees in any name. This platform is the first network communication channel between users. Investors can communicate with borrowers or guarantors through the online customer service system provided by Yun Xin Huitong, and relevant information will also become a legal element of investor's creditor's rights protection.
At the same time, investors can check the basic information of the borrower or guarantor, project investigation and evaluation, guarantee and counter-guarantee measures, relevant agreement texts, etc. in the details of the loan target.