What are the types of microfinance in China? If microfinance is defined as unsecured loans, microfinance in China can be divided into the following categories:
1. Sub-branch: government-run microfinance: such as government discount loans for poverty alleviation and microfinance guarantee funds for urban employment and re-employment.
1. Non-governmental organization microfinance: about 300, mainly relying on international assistance and social donations.
3. Microfinance businesses independently operated by financial institutions: such as credit cooperatives, city commercial banks, newly-built microfinance companies and individual trust and investment companies.
Second, according to the service object and purpose:
1, commonweal microfinance: aiming at poverty alleviation and employment, mainly small loans from government and non-governmental organizations.
2. Profit-making microfinance: for profit, mainly operated by financial institutions.
Third, sustainability:
1. Sustainable microfinance: based on financial self-financing.
2. Phased microfinance projects: not pursuing self-financing but mainly relying on subsidies and donations.
The above categories can be combined into various types of microfinance institutions, such as sustainable public welfare microfinance institutions and commercial sustainable microfinance institutions.
Fourthly, the characteristics of P2P in microfinance.
1. Direct transparency: the lender signs a personal loan contract with the borrower, so as to know each other's identity information and credit information one by one, and the lender can know the borrower's repayment progress and improvement of living conditions in time, so as to truly and intuitively experience the value he has created for others;
2. Low threshold and low channel cost: P2P credit makes everyone a disseminator and user of credit. Credit transactions can be carried out easily, and everyone can participate easily, better allocate idle funds in society, and reasonably guide the idle funds of middle-and high-income people to flow to many low-income people with good credit and need help.
3. Risk diversification: the lender distributes funds to multiple borrowers and provides small loans to maximize risk diversification;
4. Credit screening: In P2P mode, the lender can choose the credit of the borrower. Give priority to borrowers with high credit, and the loan interest rate may be more favorable.