Trust is a way of financial management, a special property management system and legal behavior, and also a financial system. Trust, banking, insurance and securities together constitute a modern financial system. Trust business is a legal act based on credit, which generally involves three parties, namely, the trustor who invests in credit, the trustee who is trusted by others and the beneficiary who benefits from others.

Microfinance is an operating loan with individuals or families as the core, and the loan amount is generally more than 1 000 yuan and less than 200,000 yuan. Microfinance is an extension of microfinance in technology and practical application. Microfinance in China: It mainly serves agriculture, rural areas and small and medium-sized enterprises. The establishment of small loan companies has rationally pooled some private funds, standardized the private lending market, and effectively solved the financing difficulties of agriculture, rural areas and small and medium-sized enterprises.

The difference between trust and microfinance:

Trust is a legal arrangement, under which you (the client) hand over the ownership of the property to others (the trustee), and others manage the property and hand over the operating income to the person (the beneficiary) you designate. As for how the trustee operates, it depends on the law on which the trust is based and the agreement in the legal documents of the trust. However, microfinance refers to small continuous credit services provided by low-income groups and micro-enterprises. Its basic characteristics are small amount, no guarantee, no mortgage and serving the poor. Microfinance can be provided by formal financial institutions and specialized microfinance institutions or organizations.