What is a microfinance company?

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.

Small loan companies should implement the national financial policies, conduct business within the scope prescribed by laws and regulations, operate independently, be responsible for their own profits and losses, operate independently, and bear their own risks. Their legitimate business activities are protected by law and are not subject to interference by any unit or individual.

Since the development of microfinance companies in China, the financing problem is often an obstacle to their development, but the microfinance companies that have been hungry for funds for a long time are welcoming nectar one after another. According to the rough statistics of relevant public information, Zhejiang, Guangdong, Chongqing, Xiamen, Hainan and other regions have relaxed the financing channels of microfinance companies, including allowing the transfer of credit assets through repurchase.

On February 26th, 20 10, Zhou Xuedong, director of the Department of Law and Law of the People's Bank of China, said that the central bank intends to cancel the control on the upper limit of the loan interest rate of microfinance companies and legalize some existing non-bank private lending institutions. According to the current regulations of the central bank, the upper limit of the loan interest rate of microfinance companies is four times the benchmark interest rate.

Benchmark for setting loan interest rate of microfinance companies:

1, determined independently according to market principles.

2, the upper limit-let go, but not more than 4 times the bank loan interest rate in the same period.

3. Lower limit-0.9 times of the benchmark loan interest rate announced by the People's Bank of China.