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What is a small loan company and what is the difference between it and a bank?
Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business.

The difference between banks is:

1, suitable for different people:

Compared with banks, small loan companies are more convenient and quick, and are suitable for the capital needs of small and medium-sized enterprises and individual industrial and commercial households.

2. Differences in liquidated damages:

Customers of microfinance companies can easily repay or refinance within a predetermined limit without paying liquidated damages! This is the best choice for customers who often need extra cash and customers who need flexible repayment and cash withdrawal at any time.

Bank overdue payment penalty refers to the penalty agreed by both parties to pay to the other party when one party fails to fulfill its payment obligations on time.

3. Different loan interest rates:

The benchmark for setting loan interest rate of microfinance companies: determined independently according to market principles; Upper limit-let go, but not more than 4 times the bank loan interest rate in the same period; Lower limit-0.9 times the benchmark loan interest rate announced by the People's Bank of China.

Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate in China is managed by the People's Bank of China. The bank loan interest rate refers to the benchmark interest rate set by the People's Bank of China, and the actual contract interest rate can fluctuate within a certain range on the basis of the benchmark interest rate.

References:

Baidu encyclopedia-micro-credit company

References:

Baidu encyclopedia-bank