Micro-loan companies are limited liability companies or joint-stock micro-loan companies established by natural persons, enterprise legal persons and their social organizations that do not absorb public deposits and operate micro-loan business.
Compared with banks, small loan companies are more convenient and faster, and are suitable for the capital needs of small and medium-sized enterprises and individual industrial and commercial households; Compared with private lending, microfinance is more standardized, and loan interest can be negotiated by both parties.
A small loan company is an enterprise legal person, which has independent legal person property, enjoys legal person property rights, and bears civil liability for its debts with all its property.
Shareholders of small loan companies enjoy the right to return on assets, participate in major decisions and choose managers according to law, and are liable to the company to the extent of their subscribed capital contribution or subscribed shares.
Small loan companies shall abide by national laws and administrative regulations, implement national financial policies, implement financial standards and accounting systems of financial enterprises, and accept the supervision and management of governments at all levels and relevant departments according to law.