1. In order to standardize the online microfinance business of microfinance companies and unify the regulatory rules and operational rules, the China Banking Regulatory Commission, together with the People's Bank of China and other departments, drafted the Interim Measures for Administration and publicly solicited opinions from the public. It is clear that the online microfinance business should be mainly carried out in the provincial administrative region where it is registered. Without the approval of the China Banking Regulatory Commission, it is not allowed to carry out online microfinance business across provincial administrative regions.
2. The provision that microfinance companies are not allowed to issue loans beyond the quota, benchmark interest rate or region is aimed at effectively administering microfinance companies and controlling industry risks, and does not involve the private law relationship between equal civil subjects. Therefore, microfinance companies violate the relevant management regulations and operate loan business beyond the quota, interest rate and region. Acts that violate administrative regulations shall bear corresponding administrative responsibilities according to law, but the commitment of administrative responsibilities shall not affect the effectiveness of the loan contract. The management organization of microfinance companies is the local financial office.
3. County-level organizations set up a "coordination group" to help and guide the healthy growth of microfinance companies, not only to create a good external environment for microfinance companies, but also to supervise their legitimate operations. Therefore, if it crosses administrative regions, supervision, coordination and management will be more difficult. Microfinance organizations can be divided into two categories according to the characteristics of their business operations: commercial and welfare, also known as institutional and welfare. The former pays more attention to the institutional sustainability in microfinance management and target design, while the latter pays more attention to the role of projects in improving the economic and social welfare of the poor.
Microfinance also has certain advantages, such as simple procedures, fast lending process, simple procedures, flexible repayment methods, wide loan scope, flexible marketing model, high loan quality of microfinance companies and low social risk of microfinance.