Twenty-second small loan companies can operate the following businesses within the approved administrative areas of counties (cities, districts):
(a) for all kinds of small loans;
(two) to handle the development, management, finance and other consulting business of small and medium-sized enterprises;
(3) Other businesses approved by the Provincial Bureau of Small and Medium Enterprises.
Article 23 The main sources of funds for a microfinance company are capital paid by shareholders, donated funds and comprehensive funds of no more than two banking financial institutions. Microfinance companies shall not engage in any form of illegal fund-raising, illegally absorb or absorb public deposits in disguised form, issue high-interest loans, obtain funds from industrial and commercial enterprises, issue loans to their shareholders, provide external guarantees, engage in business beyond their business scope, and engage in business activities outside the approved administrative areas of counties (cities, districts). The balance of incorporated funds obtained from banking financial institutions shall not exceed 50% of the company's net capital. The interest rate and term of the capital will be determined by the microfinance company and the corresponding banking financial institutions through independent consultation, and the interest rate will be determined based on the "Shanghai Interbank Offered Rate".
When providing financing to small loan companies, banking financial institutions shall carefully examine whether they meet the provisions of the preceding paragraph. In violation of the provisions of the preceding paragraph, no financing shall be granted.
A small loan company shall apply for a loan card from the branch of the People's Bank of China where it is registered. Banking financial institutions that provide financing to microfinance companies shall timely submit financing information to the local branches of the People's Bank of China and the dispatched offices of the China Banking Regulatory Commission, and track and supervise the financing use of microfinance companies.
Twenty-fourth adhere to the principle of "small, scattered" loans, the loan balance of the same borrower shall not exceed 5% of the net capital of the microfinance company.
Article 25 Small loan companies shall operate according to the principle of marketization, and the upper limit of loan interest rate shall be liberalized, but it shall not exceed the upper limit set by the judicial department, and the lower limit shall be 0.9 times of the benchmark loan interest rate, and the specific floating range shall be determined independently according to the market principle. The loan term, loan repayment term and other contract contents shall be determined by the borrower and the borrower through consultation in accordance with the principle of fairness and voluntariness.
Article 26 A small loan company shall establish and improve the loan management system, scientific authorization credit system, credit management process and internal control system, clarify the business processes and operational norms such as pre-loan investigation, in-loan review and post-loan inspection, and earnestly strengthen loan management.
Twenty-seventh small loan companies should establish a risk control management system. With reference to the relevant regulations of financial enterprises, we will establish a prudent and standardized asset classification system and provision system, accurately classify assets, and fully make provision for bad debts. The asset loss reserve adequacy ratio shall not be less than 100%.
Twenty-eighth small loan companies should establish a standardized financial system. In accordance with the Accounting Law, the Accounting System for Financial Enterprises and the Financial Rules for Financial Enterprises (Order No.42 of the Ministry of Finance of People's Republic of China (PRC)), establish and improve the financial accounting system for enterprises, truly record and comprehensively reflect the business activities and financial activities of enterprises, standardize financial behaviors and prevent financial risks. Small loan companies engaged in credit business shall implement the relevant financial and financial management systems such as the Administrative Measures for the Write-off of Bad Loans of Financial Enterprises (J.C. [2008] No.28) and the Administrative Measures for Paid Assets of Banks (J.C. [2008] No.53).
Twenty-ninth small loan companies should establish an information disclosure system. Small loan companies submit financial statements, business reports and other relevant statistical information to the Provincial Small and Medium Enterprises Bureau, local branches of the People's Bank of China and dispatched offices of the China Banking Regulatory Commission on a quarterly basis, and provide business information such as borrowers, loan amount, loan guarantee and loan repayment to the credit information system according to the requirements of local branches of the People's Bank of China. Before April 30th of each year, the microfinance company is responsible for disclosing the annual audit report, business operation, financing, major issues and other information audited by an accounting firm with securities business qualifications to the shareholders of the company, relevant competent departments, banking financial institutions providing financing and relevant donor institutions, and should disclose it to the public when necessary.