Current location - Loan Platform Complete Network - Loan intermediary - Is microfinance allowed in the country?
Is microfinance allowed in the country?
Legal analysis: allowed.

Small loans with a loan interest rate of less than 4 times in the same period of the bank belong to the legal interest rate and are protected by law; More than four times, belonging to usury, usury part is not protected by law. To be protected by law, microfinance needs at least two conditions: first, the loan company has obtained the corresponding license granted by the CBRC; Second, the loan interest shall not be higher than 4 times the interest rate of commercial banks announced by the state.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 26 If the interest rate agreed by both borrowers and lenders does not exceed 24% per annum, the people's court shall support it. The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.