Formal microfinance companies are permitted by law, and the conditions for the establishment of non-bank financial institutions approved by the industrial and commercial departments are also very harsh. Therefore, formal microfinance companies are still relatively few in principle.

However, many swindlers cheat under the banner of small loan companies, which makes borrowers suffer losses. To judge the authenticity of small loan companies, we need to start with their business qualifications.

Generally speaking, the process of providing loans by microfinance companies is relatively standardized, and it is basically deceptive to ask for various fees before getting loans. Secondly, it depends on whether the loan company intends to compound interest, commonly known as "rolling interest". If so, be careful of the problem. In addition, the interest rate of small loan companies is also clearly stipulated, which cannot exceed four times the current benchmark interest rate of bank loans. If it exceeds, it may be untrue.

How to tell whether a loan company is true or false?

The most important and omnipotent way is: never pay any fees before the loan arrives. Formal lending institutions only charge when lending money. Any company that collects money in various names before lending money must be cautious.

2. Go to the website of the industrial and commercial bureau where the loan company is located to check the operating conditions of the loan company to see if it has business qualifications;

3. See if the microfinance company has a fixed office and a fixed telephone, and beware of companies with only one mobile phone number.

Most microfinance companies that claim to be open 24 hours a day have problems. No formal loan company has such regulations on working hours. And the working hours are not regular, and the company can't be regular.

Even if it is an online microfinance company, there are still entity companies in reality. Don't trust the loan companies that only provide telephone and QQ, and sign contracts and other matters in person.

6. The conditions are particularly relaxed, there is no mortgage, no guarantee, and no proof of salary and income. Just say you can lend it to you, and be very careful. After all, microfinance is also a loan and needs to be guaranteed to be repaid. Those who say they can lend you money just by providing their ID numbers and copies must be liars.