petty loan
Introduction:
Microfinance is a commercial loan with individuals or families as the core, and the loan amount is generally more than 1 000 yuan and less than 200,000 yuan. Microfinance is an extension of microfinance in technology and practical application. Microfinance in China mainly serves agriculture, rural areas and small and medium-sized enterprises. The establishment of small loan companies has rationally pooled some private funds, standardized the private lending market, and effectively solved the financing difficulties of agriculture, rural areas and small and medium-sized enterprises. Microfinance has the characteristics of wide loan scope and flexible marketing model.
Features:
1, with simple procedures, fast lending process and simple procedures; Small loan companies have simple loan procedures, and loans are managed according to the processes of customer application, investigation, mortgage verification, guarantee, loan Committee approval, loan contract signing, loan issuance and loan principal and interest recovery. Generally, it is completed within 7 days from the date of loan acceptance, which is more convenient and faster than bank loans, and the interest is much lower than private lending.
2. The repayment method is flexible; A variety of flexible repayment and interest payment methods, such as equal monthly repayment and interest payment, quarterly interest settlement due, one-time repayment and interest payment or two-time repayment and interest payment, etc.
3. Wide loan scope; Small loan companies mainly serve small and medium-sized enterprises, individual businesses and farmers.
4. Flexible marketing model; Micro-loan companies implement risk-controllable marketing form without rating and credit, which breaks the long-term operation mode of formal financial institutions such as commercial banks, and has the characteristics of simple, efficient and fast mode, which is beneficial to SMEs to obtain credit support in time, alleviate the short-term financing difficulties of SMEs and individual industrial and commercial households, and make up for the shortage between bank loans and private lending to some extent.
5. The loan quality of microfinance companies is high; The loan quality of microfinance companies is high, because almost all the funds lent by microfinance companies are shareholders' own funds, so the audit of loan projects is more cautious; Because microfinance companies are privately operated and mainly lend money locally, they can fully understand borrowers and their uses, which is conducive to risk control.
6. Small loans have little social risk. Microfinance companies do not illegally raise funds, usury or accept loans from social idlers. Its fund-raising, lending, and loan collection all have their own execution methods, and only loans are not saved, and public deposits are not involved, so the social risk is small.