Personal feelings are helpful. Now people's consumption level is gradually rising, which is a spring for many small loan companies. However, it has great losses to the loan industry. There are 8,673 small loan companies in China, with a loan balance of 927.28 billion yuan. Behind the rapid development of small loan companies, the biggest problem is that their identities have never been solved. According to the Code Specification for Financial Institutions issued by the Central People's Bank, microfinance

In this sense, microfinance companies are other financial institutions recognized by the People's Bank of China. However, the microfinance company has not yet obtained it? Financial license? Therefore, it cannot be regarded as a legal financial institution. Therefore, although microfinance companies are engaged in loan business, there is no unified supervision by the China Banking Regulatory Commission. Microfinance companies earn their income by issuing high-interest loans to lenders. Most of these loans are mortgaged, pledged and guaranteed, while the amount of credit loans is very low. The industry average annual interest rate is about 18%, which is three times the benchmark interest rate of 6% in the same period.

The average interest rate of microfinance institutions with the background of state-owned enterprises is low, and some enterprises even do not exceed 10%. The average interest rate of microfinance companies with the background of private enterprises is high, ranging from 15% to 20%. Compared with foreign microfinance companies, China still has room for the benchmark interest rate of banks, and its profitability has not been fully released. In addition, the scale of domestic single loan is much larger than that of foreign microfinance institutions with economies of scale. According to statistics, the management fees of small loan companies account for 2.42% of the total loans, ranging from 0. 1% to 14%, far below the level of more than 20% abroad.

At present, China's small loan companies mainly serve small and medium-sized enterprises with a certain scale and vitality, professional farmers with strong operational strength, and urban residents with medium and above incomes, providing pledges, guarantees and other guarantees to ensure a high repayment rate. However, foreign microfinance institutions provide services for low-and middle-income residents, and the credit risk is high. The main source of funds for foreign microfinance institutions is commercial loans. Some countries allow microfinance companies to absorb deposits, but there are still many restrictions on the financing of microfinance companies in China.