What Are Common Uses for Petty Cash?

Cash loan, short for small cash loan business, is a consumer loan business issued to applicants. It has convenient and flexible methods of borrowing and repayment, as well as real-time approval and quick arrival.

Cash loan

Cash loan, short for small cash loan business, is a consumer loan business issued to applicants. It has convenient and flexible methods of borrowing and repayment, as well as real-time approval and quick arrival.

Since 2015, cash loans have been

Cash loan rectification was further upgraded. On December 1, the Office of the Leading Group for the Special Rectification of Internet Financial Risks and the Special Rectification of P2P Online Loan Risks formally issued the Notice on Regulating and Rectifying the Cash Loan Business (hereinafter referred to as the Notice) to clearly coordinate supervision and strengthen Cash loan rectification work.

The "Notice" clarified the development principles of the "cash loan" business, including failure to obtain qualifications for operating a lending business in accordance with the law. No organization or individual may operate a lending business. The cost of comprehensive funds should meet the requirements of private lending rates, operate prudently, and comply with "know your "Customer" principle, no violent collection, strengthen customer information protection, etc.

Judging from the "Notice", market disturbances such as violent collection, usury, and misuse of information have been included in the "negative list"-this is also the supervisory thinking revealed by Feng Yan, deputy director of the Inclusive Finance Department of the China Banking Regulatory Commission on Friday afternoon. The Notice also clearly states that the regulatory department of microfinance companies has suspended the newly approved network (Internet) microfinance companies; the suspension of newly approved microfinance companies across provinces (regions, cities) to launch microfinance business. If the preparations have been approved, the approval for business opening is suspended. The approved department of a small loan company shall comply with the relevant documents of the State Council. For approved institutions that do not meet the relevant regulations, the business qualification shall be re-examined.

The "Notice" stated that the issuance of online small loans with no specific scenes and no designated uses was suspended, and the existing businesses were gradually reduced, and the rectification was completed within the deadline. No organization or individual is allowed to engage in lending business without obtaining the qualification for operating lending business according to law. Licensed and Compliance Management is also one of the main ideas of the regulatory authorities.

In addition, the "Notice" further regulates the participation of banking financial institutions in the "cash loan" business. It is pointed out that those banking financial institutions that cooperate with third-party institutions to develop loan business shall not outsource core business such as credit review and risk control. The loan assistance business should return to its original origin. Banking financial institutions shall not accept credit guarantee services and disguised credit enhancement services such as untrustworthy third-party institutions, and shall require and guarantee that third-party cooperative institutions shall not charge borrowers interest rates . ^[3-7]

It is undeniable that "cash loans" can solve the urgent needs of consumers. However, the chaos that breeds them can not be ignored, especially the "cash loan" that has been criticized for the hidden high interest rates. Although some lenders claim "low interest" or even "zero interest", a variety of service fees, operating fees, overdue fees, late fees, etc. can be converted, and interest rates often reach 400% or even 600%. In addition, under the extensive business model, the bad debt rate remains high, and the violent collection of borrowers' breach of the legal bottom line has disturbed the normal financial order and caused adverse effects on social stability. ^[8]