Banks provide small loans to people with good personal credit records, which are generally used for daily consumption and generally do not need any collateral or third-party guarantee.

The starting point of personal small short-term credit loan is 2000 yuan, and the loan amount does not exceed 6 times of the borrower's monthly salary, and the maximum is 20,000 yuan.

First, the concept of microfinance

Microfinance is a comprehensive consumer loan with individuals or enterprises as the core. The loan amount is generally more than 6,543,800 yuan and less than 200,000 yuan. The treatment process generally needs to be guaranteed. Microfinance is an extension of microfinance in technology and practical application.

Second, the application steps of small loans

1. The borrower shall apply to the bank outlets that provide small loans. When applying, the borrower should bring ID card, proof of address, proof of stable income source and other related materials, and if it is a merchant, it should also bring a business license;

2. After receiving the lender's application, the bank will review the lender;

3 through the bank's audit and approval, signed a loan contract with the bank;

4. The bank lent money, and the lender successfully got the loan.

The above four steps are the general process of bank microfinance. Different banks may have slightly different provisions on microfinance, and the materials to be submitted are also different. In order to avoid loan risks, some banks will require lenders to meet certain conditions, such as age, income level and repayment ability.

Three, the application conditions of small loans

1. China citizens with full civil capacity who have a fixed residence in China, or a fixed residence (or valid residence certificate) in a local town, or a fixed business place;

2. Have a legitimate occupation and stable economic income, and have the ability to repay the principal and interest of the loan on schedule;

3. No bad credit record;

4. Loans cannot be used for stock trading, house purchase, gambling and other behaviors;

5. Other bank microfinance conditions stipulated by the lender.

Four, the calculation method of interest rate of small loans

The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1. daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.

2. Monthly interest rate (‰) = annual interest rate (%)÷ 12