What is Microlending?

Microloans are comprehensive consumer loans with individuals or businesses as the core. The amount of the loan is generally more than 10,000 yuan and less than 200,000 yuan. The process generally requires a guarantee. Microloans are an extension of microloans in technology and practical applications. Microfinance in China: It mainly serves agriculture, rural areas, farmers and SMEs. The establishment of a small loan company rationally concentrated some private funds, standardized the private loan market, and effectively solved the problem of financing difficulties for agriculture, rural areas, and farmers. At present, there are also personal micro-loans for office workers ranging from 10 to 50,000 yuan. Most of them do not require mortgages, but credit and information audits are strict.

Microloans

According to the definition of popular international viewpoints, microfinance refers to low-income groups and micro-enterprise continuous credit services with a small amount. Its basic characteristics are small amounts, unsecured, unsecured, and serving the poor. Microfinance can be provided by formal financial institutions and specialized microfinance institutions or organizations.
According to the characteristics of business operations, microfinance organizations are divided into two categories: commercial and welfare, also known as institutionalism and welfare. The former emphasizes institutional sustainability in microfinance management and goal design, with the People's Bank of Indonesia as the representative; the latter pays more attention to the role of the project in improving the economic and social welfare of the poor, with Bangladesh Rural Bank as the representative. Many companies stand out in small loans. For example, Ziqing Finance is a leader in the field of comprehensive P2P that integrates wealth management, credit risk assessment and management, credit data integration services, small loan industry investment, small and micro loan consulting services and transactions. One is to provide customers with comprehensive and personalized inclusive finance and wealth management services. Yibaotong specializes in the lending of funds in the field of construction engineering, and provides comprehensive network services for small and medium-sized micro-enterprises' entrepreneurial and operating capital financing and personal consumption loans. Weidai creates the fastest financing platform for small and micro enterprises and private capital, actively explores the best way of debt financing, and strives to create a unique high-speed, effective, and legal online lending platform. The lenders and borrowers will be independently matched to solve the most urgent loan and financing problems for the vast number of individuals and small and medium enterprises in China. Solving the problem of the poor is a huge difficulty faced by most countries in the world, because various social problems caused by poverty can lead to turmoil throughout the country. Microfinance can greatly improve the economic situation of low-income people by greatly To increase the effective demand of society as a whole, and promote social investment and production and national economic development.
Small amount
1. Simple procedures, fast lending process and simple procedures;
2. Flexible repayment methods;
3. Wide range of loans;
4. Flexible marketing model;
5. The loan quality of small loan companies is high;
6. Small loans have low social risks.
(I) Divided by the term of the loan
Medium and long-term loans
Medium term loan
short-term loan
Overdraft
(B) by currency
Local currency loan
Foreign currency loan
(3) Divided by the nature of the loan subject
Loans to economic organizations
Corporate unit loan
Public institution loans
personal loan
(IV) Divided by loan purpose
Enterprise (Economic Organization)
Fixed asset investment loan
Project financing loan
General fixed asset loans
Working capital loan
Floor capital loan
Temporary working capital loan
Discounted bills
Personal class
Personal business loans
Personal consumer loans
home mortgage loan
First-hand housing loan
Second-hand housing loan
Commercial Mortgage
First-hand housing loan
Second-hand housing loan
car loan
One hand car
Second-hand car
Student Loans
Other consumer loans
Decoration loan
Travel loan
Consumer durables loans
Personal Pledged Loans
other
(5) Divided by interest rate
Fixed rate loan
Floating rate loan
Mixed rate loan
(6) Divided by loan guarantee method
Credit Loans
Secured loan
Discounted bills
(VII) Classification by loan asset quality (risk level)
Normal loan
Focus on loans
Subprime loan
Suspicious loan
Loss loan
(8) Divided by the existence of loans
Normal loan
Overdue loans (0-180 days overdue)
Dull loans (181-360 days overdue)
Bad debt loans (overdue for more than 361 days)
(IX) Divided by the occupation pattern of loans in social reproduction
Working capital loan
Fixed capital loan
(10) Classification of loan quality according to international practice (risk level)
normal
attention
Secondary
suspicious
loss
(11) Divided by loan channel
Traditional loans (also called offline loans)
Online loans (also called online loans)
Mobile loan
1. The borrower submits an application to the bank branch where the small loan is opened. When applying, the borrower should bring relevant information such as identity card, proof of address, proof of stable income source, etc.
I. Basic knowledge of interest calculation
(1) The interest rate conversion formula for RMB business is (Note: deposit and loan are universal):
1. Daily interest rate (0/000) = annual interest rate (%) ÷ 360 = monthly interest rate () ÷ 30
2. Monthly interest rate () = annual interest rate (%) ÷ 12
(2) Banks can use the cumulative interest method and the interest method to calculate interest:
1. Accumulated interest calculation method accumulates the daily account balance based on the actual number of days, and calculates the interest by multiplying the accumulated number by the daily interest rate. The interest calculation formula is:
Interest = cumulative interest-bearing products × daily interest rate, of which cumulative interest-bearing products = daily balance total.
2. Interest-by-interest method calculates interest on a case-by-case basis according to a pre-determined interest-calculation formula. Interest = principal × interest rate × loan term. There are three specific:
If the interest calculation period is the whole year (month), the interest calculation formula is:
Interest = principal x years (months) x annual (months) interest rate
If the interest accrual period has a whole year (month) and a fraction of days, the interest accrual formula is:
Interest = principal x years (months) x annual (months) interest rate + principal x fractional days x daily interest rates
At the same time, the bank can choose to convert the interest calculation period into actual days to calculate interest, that is, 365 days per year (366 days in a leap year), and each month is the actual number of days in the Gregorian calendar. The interest calculation formula is:
Interest = principal x actual days x daily interest rate
These three calculation formulas are essentially the same, but since the interest rate conversion only takes 360 days a year, when the actual interest rate is calculated, the year will take 365 days to calculate, and the results obtained will be slightly biased. Which formula is used specifically to calculate, the central bank has given financial institutions the right to make their own choices. Therefore, the parties and financial institutions can agree on this in the contract.
(3) Compound interest: Compound interest means to add interest to interest at a certain rate. According to the provisions of the central bank, if the borrower fails to repay the interest within the time agreed in the contract, compound interest will be charged.
(4) Penalty interest: The lender fails to repay the bank loan within the prescribed period, and the penalty interest on the defaulter according to the contract signed with the parties is called the bank penalty interest.
(5) Overdue liquidated damages for loans: the nature is the same as penalties and penalties for the defaulting party.
(6) Formulation and filing of interest calculation methods
The national commercial bank legal person's calculation and settlement rules and the method of interest calculation for deposit and loan business shall be reported to the head office of the People's Bank of China and notified to customers; regional commercial banks and urban credit cooperatives shall be reported to the People s Bank of China branch, provincial capital (capital) cities The central branch records and informs the customers; the rural credit cooperative county federation legal person can formulate the calculation and settlement rules and interest calculation methods of the deposit and loan business according to the actual situation of the county rural credit cooperative, and report it to the People's Bank of China branch, the provincial capital (capital) city center Sub-branch for the record, and the rural credit cooperative legal person will inform the customer.
(VII) Reference basis:
1. "Regulations on the Management of RMB Interest Rates" Yinfa [1999] No. 77.
2. "Circular of the People's Bank of China on Issues Concerning the Interest Rate of RMB Loans" Yinfa [2003] No. 251.
3. Notice of the People's Bank of China on the Calculation and Settlement of Interest on RMB Deposits and Loans Yinfa [2005] No. 129.
Application conditions
1. A Chinese citizen with full civil capacity who has a fixed residence in China, a permanent residence in a local town (or a valid residence certificate), or a fixed place of business;
2. Have a proper occupation and stable economic income, and have the ability to repay the principal and interest of the loan on schedule;
3. No bad credit history;
4. The loan cannot be used for stock speculation, house purchase, gambling, etc .;
5. Other bank small loan conditions stipulated by the lender.
Micro-loan bank application materials 1. Provide personal identification, which can be information such as identity cards, residence permits, household registration books, marriage certificates, etc .; temporary residence permits for different locations are required;
2.Provide stable proof of residential address, house lease contract, water and electricity payment slip, property management and other related certificates;
3. Provide proof of stable sources of income, bank slips, labor contracts, etc.
Features
  1. The procedure is simple, the loan process is fast, and the procedures are simple. The small loan company's loan procedure is simple, and the loan is managed according to customer applications, acceptance and investigation, verification of mortgage conditions, guarantee conditions, loan committee approval, signing of loan contracts, loan issuance, and loan principal and interest recovery. Generally, the application is completed within 7 days from the date of loan acceptance, which is more convenient and faster than a bank loan. Compared with private loans, the interest is much lower.
  2. Flexible repayment methods. A variety of flexible repayment and payment methods, such as monthly repayment of principal and interest, quarterly interest repayment and maturity repayment, one-time repayment of principal and interest, or two repayments of principal and interest.
  3. Wide range of loans. The service targets of micro-credit companies are mainly small and medium-sized enterprises, individual industrial and commercial households, and farmers.
  4. Flexible marketing model. Micro-loan companies implement a non-rating and non-credit marketing model under control of risks, breaking the long-term business methods of commercial banks and other formal financial institutions. They are simple, efficient, and fast, and are conducive to SMEs' timely access to credit support To ease the short-term financing difficulties of small and medium-sized enterprises and individual industrial and commercial households, to a certain extent, it makes up for the shortcomings between bank loans and private loans.
  5. The quality of loans from microfinance companies is high. The quality of microfinance companies 'loans is high because almost all of the funds lent by the microfinance companies are the shareholders' own funds, so the review of loan projects is more cautious; since the microfinance companies are privately run, they mainly lend locally , Can fully understand the borrower and its use, so it has certain benefits for risk control.
  6. Microloans have low social risks. Micro-loan companies do not raise funds illegally, do not lend usury, and do not collect loans from social idlers. Its fund-raising, lending, and collection of loans have their own implementation methods, and only loans are not saved, does not involve public deposits, and the social risk is small.
development of
Microfinance is a loan innovation oriented to traditional commercial banks that cannot cover customers. It mainly addresses some small, decentralized, short-term, unsecured, and unsecured funding needs. It is an effective tool for using financial means to alleviate poverty and become rich. Important financial support for sustainable development.
According to the " Statistical Report on Microfinance Companies in the First Half of 2014 " released by the People's Bank of China on July 23, 2014, as of the end of June 2014, there were 8,394 microfinance companies in the country with a loan balance of 881.1 billion yuan. RMB 61.8 billion yuan of new loans were added. [2]
China's micro-loan market investment institutions must come from industrial capital; financing institutions are statutory banks, and policies have not released the leverage tools such as storage, interbank lending, asset securitization, and the path of financing through listing is still being explored.
China's micro-credit rating has started trial implementation in various provinces. The leading agency is the local regulatory agency. There is no independent third-party authoritative rating agency. According to the traditional concept path of financial supervision, it is expected that the various innovative businesses of microfinance institutions will be based on rating assessment; if the open market business is released in the future, there will be huge demand for independent third-party rating agencies.
Technical consulting agencies are currently active in the domestic IPC and other international institutions with high market recognition and have completed a large number of consulting service projects. Exploring the technology suitable for domestic small loans is still the focus of attention in the market. Although domestic consulting companies and commercial banks have carried out some attempts, they have not yet formed a complete consulting service product.
Examination of the relevant qualifications of the borrower is a prerequisite for the signing of a loan contract and an essential procedure for borrowing. The significance of the review is to assess the magnitude of the loan risk and then determine the success of the loan transaction.
I. Review risk The generation of loan risks often begins at the loan review stage. It can be seen that the risks arising during the loan review stage mainly occur in the following links.
(I) Omission of Review Contents Loan review is a meticulous task, requiring investigators to conduct systematic inspections and investigations on the qualifications, qualifications, credits, and property conditions of the loan subject. In practice, some commercial bank loan appraisers are leaked, causing credit risk.
(2) There is no due diligence in practice. The loan reviewers often only pay attention to the identification of documents, but lack due diligence. In this way, it is difficult to identify fraud in loans and cause credit risks.
(3) Judgment errors
The banks have not listened to expert opinions on the relevant content, or professional judgments have been made by professionals. In the process of loan review, it is not only to find out the facts, but also to make professional judgments on the relevant facts in terms of law and finance.
Legal content of pre-loan investigation
(1) Examining the legal status of the borrower regarding the legal establishment and continuous existence of the borrower. If it is an enterprise, it should check whether the borrower has been established in accordance with the law, whether it has the qualifications and qualifications to engage in related business, check the business license and qualification certificate, and pay attention to whether the relevant license has passed the annual inspection or relevant inspection.
(2) Regarding the borrower's creditworthiness, check whether the registered capital of the borrower is suitable for the borrowing; examine whether there is any apparent withdrawal of the registered capital; previous borrowing and repayment; and the borrower's product quality, environmental protection, tax payment, etc. There are no illegal situations that may affect repayment.
(3) Regarding the borrowing conditions of the borrower Whether the borrower has opened a basic account and a general deposit account in accordance with the relevant laws and regulations; whether the borrower (if it is a company) whose external investment exceeds 50% of its net assets; the borrower's debt ratio Whether it meets the requirements of the lender;
(4) Regarding the guarantee For the guarantee guarantee, the qualification, creditworthiness and ability to perform the contract of the guarantor shall be investigated.
3. Borrowers and their principals should also conduct a special review. To mitigate the moral hazard of the lender, the borrower and its principals should also specifically review the financial institutions' loan qualifications, in addition to examining the borrower's qualifications, conditions, and operating conditions. In addition to other circumstances, the personal quality of the investors and legal representatives and key managers of the enterprise shall be strengthened and controlled, including:
(1) Gambling, drug abuse, prostitution, and fostering of mistresses to the chairman, general manager, plant manager, and manager, etc., often go to dance halls, saunas, and organize weddings, funerals, and weddings. In the case of limousines and often renting luxury hotels, corporate loans must be strictly controlled.
(2) Loans to family-owned groups or companies must be strictly controlled. The so-called family-type group or company refers to an enterprise in which the main persons in charge of the group and its subsidiaries or branches, the main leadership positions within the enterprise are wholly or mainly held by persons with blood ties and their families and relatives.
(3) For corporate representatives who hold foreign passports or have foreign permanent residency, if their enterprises and companies have branches abroad, the loans of enterprises whose major family members settle abroad or set up companies abroad should be strictly controlled. Legal representatives should pay close attention to the capital exchanges of overseas companies and enterprises. In particular, the transfer of funds abroad or the unknown transfer of funds must be strictly examined, monitored and stopped in a timely manner.
(4) Before the loan, the part-time work of the legal representative of the enterprise shall be investigated. Loans to related enterprises where one person serves as the representative of multiple corporate legal persons must be strictly controlled.
(5) When reviewing a loan, it must be based on the borrower's qualifications, conditions, operating conditions, repayment ability, and quality of the main person in charge of the enterprise. It must not be based on the political identity of the borrower, such as "model workers", "advanced elements" "," Overseas Chinese "," Representatives of the National People's Congress "," members of the CPPCC ", etc., to reduce loan conditions or to issue and manage loans in accordance with rules and regulations.
(6) The borrowing and lending relationship only occurs between the parties. For those loans that have passed or made use of the relationship of leaders, relatives, friends, classmates, comrades-in-arms, etc., and write notes, the examination of loan conditions must not be relaxed. No loan will be granted to those who do not meet the loan conditions.
(7) When issuing a secured loan, the relationship between the borrower and the guarantor must be carefully investigated. For enterprises where the borrower and the guarantor belong to the same group company, the loan must be strictly examined. The guarantee provided by the branch of a non-independent legal person is invalid.
Suggestions for loan review
Every loan is carefully reviewed, and the risk assessment of the loan cannot be based on past reviews or credit. The review cannot be relaxed or the investigation procedure reduced because the borrower has repaid the principal and interest on time in the past.
Establish a regular appointment system for the borrower's legal representative and its main management personnel. The appointment period can be determined according to the size of the loan amount and the changes in the production and operation of the borrower. If the loan amount is large, the appointment period should be shortened accordingly.
Credit officers (loan officers, members of the credit review team, members of the credit review committee) and borrowers must not engage in improper private contact in lending activities.
Credit personnel and their immediate family members shall not accept the borrower's cash, valuable gifts, shopping vouchers, etc .; may not participate in entertainment activities where the borrower pays fees; and shall not reimburse the borrower for any expenses.
For loans with large amounts, long periods of time, or loans used by borrowers for specific purposes, professionals such as lawyers and accountants should be hired to make professional judgments and provide expert opinions on related matters.
According to the website of the People's Bank of China, as of the end of 2014, there were a total of 8,791 small loan companies across the country with a loan balance of 942 billion yuan. In 2014, RMB loans increased by 122.8 billion yuan. [3]
Although my country
Rural bank microfinance model founded by Yunus.
Since the establishment of the Rural Bank of Bangladesh, microfinance has been warmly welcomed by the local poor, and nearly 60% of borrowers and their families have moved out of the poverty line. This model was quickly extended to many countries in Asia, Africa, and Latin America.
Credit
Many developing countries have become a very effective poverty alleviation method.
The Bangladesh Rural Bank model is a model of non-governmental organizations engaged in microfinance. Founded in 1974, transformed into an independent bank in the 1980s with government support. The Bangladesh Rural Bank's group-based farmer organization requires that poor people with similar socioeconomic status within the same community form a loan group on a voluntary basis to help each other select projects, monitor each other's implementation of the project, and assume responsibility for repaying loans. Banks issue unsecured, short-term microcredits based on borrower demand, but require farmers to repay in installments every week. The Bangladesh Rural Bank requires customers to open a savings account while lending. When the deposit amount reaches a certain level, it must purchase the shares of the Bangladesh Rural Bank to become a shareholder of the bank. To date, banks have loaned more than US $ 5.7 billion to approximately 6.6 million people. Of these, 97% of lenders are women, and US $ 5 billion has been repaid, with a repayment rate of nearly 99%.
Mohamed Yunus, winner of the 2006 Nobel Peace Prize, said: "Our work runs through several aspects, especially the eradication of poverty. At the same time, there are also economic aspects. We have raised economic issues that many people have never touched on. With the economic philosophy, the economic impact is great. "
Small loan company
A micro-loan company is a limited liability company or company limited by shares invested by natural persons, corporate legal persons, and other social organizations that does not absorb public deposits.
A micro-loan company is an enterprise legal person, has independent legal person property, enjoys the legal person's property rights, and assumes civil liability for its debts with all property. Shareholders of microfinance companies enjoy the rights to asset returns, participate in major decision-making, and choose managers in accordance with the law. They are liable to the company within the limits of their capital contributions or shares they subscribe for.
Microfinance companies shall abide by national laws and administrative regulations, implement national financial guidelines and policies, implement financial standards and accounting systems for financial enterprises, and accept supervision and management by governments at all levels and relevant departments in accordance with the law.
Microfinance companies should implement national financial guidelines and policies, conduct business within the scope prescribed by laws and regulations, operate independently, bear their own profits and losses, self-restraint, and bear their own risks. Their legitimate business activities are protected by law and are not protected by any organization Personal interference.
Since 2004, in order to fill the gap in financial product support for low- and middle-income groups and micro-enterprises, the country has successively introduced a series of supporting policies to develop microcredit. Among them, some professional microfinance companies have emerged, such as CreditEase, which is a collection of wealth management, credit risk assessment and management, credit data integration services, microloan industry investment, micro-micro loan consulting services and transactions. A comprehensive modern service industry enterprise integrating promotion, microfinance farming platform services and other services. A strong national collaborative service network has been established in more than 50 cities and more than 10 rural areas to provide customers with comprehensive and personalized inclusive financial services and wealth management. Yixin Loan launched by CreditEase is currently the leading domestic car mortgage loan service brand. It is a short-term mortgage loan service launched by CreditEase, the largest domestic P2P loan service platform. Customers use their own vehicle ownership as a mortgage The method of obtaining funds provides convenient and fast financing channels for individuals with short-term capital turnover or financing. IKEA's GPS mortgage loan service: After the customer goes through the mortgage procedures, the vehicle can continue to be used without driving, and can drive freely. The procedures are simple and can be received on the same day. The term of the loan is free to choose, and the repayment method is more free and flexible.
Carry out qualification review and field visits to companies applying for financing, select high-quality projects with investment value and make them available to investors on the website; provide an online investment trading platform to generate real-time legal loan contracts for investors; supervise companies Management of risk management funds to ensure the safety of investor funds. The financing method created by Love Investment is to let professional institutions do professional things. On the one hand, it takes advantage of the openness and openness of the Internet, and combines the professionalism of traditional financial institutions in risk control, credit review, and so on. As a platform for investment and financing, Ai Investment is in the middle of a combined position. On both sides are investors and demand parties with financing needs, but they also work closely with third-party guarantee agencies. Has many years of professional risk control capabilities, and are all over 100 million yuan of funds, to provide users with professional guarantees for investment. At the same time, it also cooperates with institutions such as credit rating agencies and asset management agencies to provide users with a comprehensive interpretation of investment information and provide follow-up guarantees for asset disposal.
With the development of the domestic small loan market and the intensification of competition in the same industry, the extensive business model and single business idea of traditional small loan companies are showing more and more limitations. And its risk prevention and control ability, corporate governance level, and business operation model are also facing more and more tests. Many domestic small loan companies have begun to explore group business models, such as Bangxin Microfinance, trying to operate small loan companies through chain layout, scale development and unified management, so as to find the best balance between costs, risks and benefits. .
At present, several major banks have also started microfinance business. However, due to low consumer awareness and other issues, in the early stages of the development of the industry, the market was relatively chaotic. Therefore, if a small business or individual needs to apply for a loan, it is best to consult a professional and capable company. Such as Huifu loan.
how to apply
First, the district (county) government with the intention of piloting submits a pilot application to the Municipal Finance Office, clarifies the pilot work plan, and promises to assume responsibility for risk prevention and disposal.
Secondly, the district (county) government screens the main sponsors of the small loan companies that meet the relevant conditions and have the intention to declare in this district (county).
Finally, the main sponsor of the selected small loan company submitted the application documents for the establishment of the small loan company to the district (county) government, and the district (county) government completed the preliminary review and reported it to the Municipal Finance Office for review.
The applicant of the small loan company shall, with the approval of the Municipal Finance Office, go through the registration procedures and obtain the business license with the administrative department for industry and commerce in accordance with the law, and submit the relevant materials to the local public security organ, the CBRC and the People's Bank branch within 5 working days.
Application conditions
  1. There are regulations in compliance.
  2. The initiator or investor shall meet the prescribed conditions.
  3. Microfinance companies are organized as limited liability companies or joint stock companies. A limited liability company shall be established by 50 or less shareholders; a company limited by shares shall have 2 to 200 promoters, of which more than half shall have a domicile in China.
  4. The source of the registered capital of the microfinance company shall be real and legal, and all shall be paid-in monetary capital, which shall be paid in full by the investor or promoter. The registered capital of a limited liability company shall not be less than 50 million yuan; the registered capital of a joint stock limited company shall not be less than 70 million yuan. The principal sponsor's net assets in principle must not be less than 50 million yuan, the asset-liability ratio is not higher than 70%, and the company has made profits for three consecutive years with a total profit of more than 14.4 million yuan. The principal sponsor's shareholding does not exceed 20% in principle, and the shares held by other individual shareholders and related shareholders do not exceed 10% of the total registered capital.
  5. Directors and senior management personnel who meet the qualification requirements.
  6. Have staff with appropriate expertise and experience.
  7. Have the necessary organization and management system.
  8. There are qualified business premises, safety precautions and other business-related facilities.
  9. Other prudential conditions stipulated by the Provincial Government Finance Office.
Basic conditions
In practical terms, the basic conditions for microcredit loans in China are:
First, residents of mainland China;
The second is to have a stable residential address and work or business place;
Third, there is a stable source of income;
Fourth, there is no bad credit history, and the loan cannot be used for stock speculation or gambling.
Fifth, when applying for a car lending loan that does not require a car, the applicant must meet the following requirements: mid-to-high-end imported and domestic private cars. Customers who need daily vehicles, pay attention to privacy, have short-term funding requirements, and have good credit. Have a stable career, the applicant has the ownership of a local mortgage vehicle, and the business develops long-term residence and work in the city. You are required to produce a motor vehicle registration certificate, driving license, purchase additional tax certificate (this), car purchase invoice, insurance policy, vehicle tax, import vehicle related tax certificate, ID card (non-local account customers provide temporary residence permit or residence permit within the validity period).
Application materials
1. Provide personal identification, which can be ID card, residence permit, residence booklet, marriage certificate and other information;
2.Provide stable proof of residential address, house lease contract, water and electricity payment slip, property management and other related certificates;
3. Provide proof of stable income sources, bank slips, labor contracts, etc.
Procedure
  1. Apply to the bank for a loan;
  2. After the bank accepts, it evaluates the value of the mortgaged property and verifies the loan amount based on the evaluated value;
  3. Sign loan contracts, etc .;
  4. Handle real estate mortgage registration matters;
  5. Bank lending
  6. Auto mortgage loan application process. A car loan provided by IKEA that does not require a car can be processed smoothly for one day, and the approval amount is high. The process is as follows: 1. application, 2. car inspection, 3. evaluation, 4. signing, 5. Contract, 6. Mortgage and other formalities, 7. Arrival, 8. Repayment
Corporate guarantee
For small loans, guarantees must be obtained from third-party companies.
Loan conditions
1. Chinese citizens with full civil capacity who have a fixed residence in China, a permanent resident account (or a valid residence certificate) in a local town, or a fixed place of business;
2. Have a proper occupation and stable economic income, and have the ability to repay the principal and interest of the loan on schedule;
3 No bad credit history, the use of loans can not be used for house purchases, stock speculation, gambling, etc .;
As long as you meet the bank's personal small loan application conditions, you can provide this card by providing an ID card, a stable residential address certificate, and a stable income source certificate.
Application information
1. Provide personal identification and other information;
2.Provide stable proof of residential address, house lease contract, water and electricity payment slip, property management and other related certificates;
3. Provide proof of stable sources of income, bank slips, labor contracts, etc.
The steps / processes / procedures of the loan are that you submit personal loan requirements and general information to the bank or loan product agency, and then the bank conducts a preliminary review of the loan application of the loan applicant, and arranges a special person to contact the loan applicant. Then guide the loan applicant to provide the required materials, and then review, and finally reach a loan loan.
When applying for a loan, you must provide: proof of marital status, personal or family income, and property status; proof of repayment ability; related agreements and contracts in the use of loans; guarantee materials, ownership certificates and lists involving collateral or pledges, banks Valuation report of collateral (pledge) issued by a recognized assessment department. In addition to written materials, there must be collateral. There are many ways to mortgage, which can be movable property, real property mortgage, regular deposit certificate pledge, marketable securities pledge, highly liquid movable pledge, and qualified guarantor guarantee. Start-up micro-guaranteed loans are policy-based micro-loans, which are issued by designated banks!
Precautions
1. Although it is called a small amount, it is also a loan. All loans, whether bank loans or private loans, require you to have the ability to repay. In other words, those who claim that they can lend to you without any conditions must be a liar or a guise.
2. In addition, many people ask whether the loan can be obtained with an ID card. The ID card can be replenished at any time. With the ID card, the regular lending company will not lend it to you.
3. How to distinguish illegal institutions when choosing a lending institution
  1. Look at the interest rate. If it is 4 times higher than the benchmark interest rate for the same period, it is already illegal.
  2. See if there is a charge before lending. If you charge fees in the name of interest, you may be delayed.
  3. Interest transfers, fees for various reasons before lending, excessive interest rates, no signing of contracts, etc.
All the above issues need attention. Don't be lucky. Without the ability to repay, no one will lend you money.
There are still many people who do not know how to make personal credit loans at banks. I write down the information:
Conditions: 1. Monthly income after tax is over 6,000, and it is printed on the bank card.
2. Personal credit information without any bad records
Amount: up to six times the monthly income.
Lending rates
(I) Interest rate
The ratio of interest to total loan funds over a certain period is an expression of loan prices. That is: interest rate = interest amount / loan principal interest rate is divided into daily interest rate, monthly interest rate, and annual interest rate. The lender determines the loan interest rate with the lender according to the benchmark interest rate and interest rate floating space published by the relevant laws and regulations of various countries.
(B) the benchmark interest rate
The benchmark interest rate is an interest rate that has universal reference in the financial market. Other interest rates or the price of financial assets can be determined based on this benchmark interest rate. The benchmark interest rate is one of the important prerequisites for the marketization of interest rates. Under the marketization of interest rates, financiers measure financing costs, investors calculate investment income, and management's macroeconomic regulation and control all objectively require a generally recognized benchmark. The interest rate level is used as a reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism. To put it simply, you usually save money in the bank and he will give you interest. The larger the benchmark interest rate, the more interest; the smaller the benchmark interest rate, the smaller the interest.
(3) Changes in interest rates
The People's Bank of China has decided to reduce the benchmark interest rate for RMB deposits and loans of financial institutions since June 8, 2012. The benchmark one-year deposit and loan interest rates of financial institutions were reduced by 0.25 percentage points.
On June 8, 2012, the People's Bank of China decided to reduce the benchmark interest rate for RMB deposits and loans of financial institutions from June 8, 2012. The benchmark one-year deposit and loan interest rates of financial institutions were reduced by 0.25 percentage points, and the housing provident fund deposit and loan interest rates were also reduced simultaneously.
On July 6, 2011, the People's Bank of China decided to raise the benchmark interest rate for RMB deposits and loans of financial institutions by July 7, 2011. The benchmark one-year deposit and loan interest rates of financial institutions were raised by 0.25 percentage points, and the housing provident fund deposit and loan interest rates were also raised simultaneously.
On April 5, 2011, the People's Bank of China decided to increase the benchmark interest rate on RMB deposits and loans of financial institutions from April 6, 2011. The benchmark one-year deposit and loan interest rates of financial institutions were raised by 0.25 percentage points.
On February 8, 2011, the People's Bank of China decided to raise the benchmark interest rate for RMB deposits and loans of financial institutions from February 9, 2011.
On December 25, 2010, the People's Bank of China decided to increase the benchmark interest rate on RMB deposits and loans of financial institutions from December 26, 2010. The one-year benchmark interest rates for deposits and loans of financial institutions were raised by 0.25 percentage points, and the benchmark interest rates for other grades of deposits and loans were adjusted accordingly.
On October 19, 2010, from October 20, 2010, the interest rate on bank loans will be raised by the RMB deposit and loan benchmark rates for financial institutions. The benchmark one-year deposit interest rate of financial institutions was raised by 0.25 percentage points, from the current 2.25% to 2.50%; the benchmark one-year loan interest rate was increased by 0.25 percentage points, from the current 5.31% to 5.56%; other benchmarks for deposits and loans The interest rate is adjusted accordingly.
From November 27, 2008, starting from November 27, 2008, the one-year RMB deposit and loan benchmark interest rates for financial institutions will be reduced by 1.08 percentage points, and the other maturity grade deposit and loan benchmark interest rates will be adjusted accordingly. At the same time, interest rates such as refinancing and rediscounting by the Central Bank were reduced.
On October 29, 2008, from October 30, 2008, the one-year deposit benchmark interest rate was reduced from the current 3.87% to 3.60%, a decrease of 0.27 percentage points; the one-year loan benchmark interest rate was lowered from the current 6.93% to 6.66. %, Down by 0.27 percentage points; the benchmark interest rates for other grades of deposits and loans are adjusted accordingly. The personal housing provident fund loan interest rate remains unchanged.
On October 8, 2008, from October 9, 2008, the one-year RMB deposit and loan benchmark interest rates will be reduced by 0.27 percentage points; from October 15, 2008, the RMB deposit reserve ratio of deposit-type financial institutions will be reduced by 0.5 percentage points.
On September 15, 2008, from September 16, 2008, the one-year RMB loan benchmark interest rate will be reduced by 0.27 percentage points; from September 25, 2008, the RMB deposit reserve ratio of deposit-type financial institutions will be reduced by 1 percentage point.
On December 20, 2007, the one-year deposit benchmark interest rate was raised by 0.27 percentage points; the one-year loan benchmark interest rate was increased by 0.18 percentage points.
On September 15, 2007, the benchmark interest rate for RMB deposits and loans of financial institutions was raised by 0.27 percentage points.
On August 22, 2007, the benchmark interest rate for RMB deposits and loans of financial institutions was raised by 0.27 percentage points.
On July 20, 2007, the benchmark interest rate for RMB deposits and loans of financial institutions was raised by 0.27 percentage points.
On May 19, 2007, the benchmark one-year deposit interest rate was raised by 0.27 percentage points; the benchmark one-year loan interest rate was increased by 0.18 percentage points.
On March 18, 2007, the benchmark interest rate for RMB deposits and loans of financial institutions was raised by 0.27 percentage points.
On August 19, 2006, the one-year deposit and loan benchmark interest rates were raised by 0.27%.
On April 28, 2006, the loan interest rate of financial institutions was raised by 0.27% to 5.85%.
On March 17, 2005, the interest rate on housing loans was raised.
On October 29, 2004, the one-year deposit and loan interest rates were raised by 0.27%.
On July 11, 1993, the one-year time deposit rate was increased from 9.18% to 10.98%.
Three-sex principle
The "three principles" refers to safety, liquidity, and efficiency, which are the fundamental principles of commercial bank loan operations. Article 4 of the "Commercial Banking Law of the People's Republic of China" stipulates: "Commercial banks operate on the principles of safety, liquidity and efficiency, implement independent operations, bear their own risks, bear their own profits and losses, and restrain themselves."
1. Loan security is the most important issue facing commercial banks;
2. Liquidity refers to the ability to recover loans within a predetermined period, or to quickly cash out without loss, to meet the needs of customers to withdraw deposits at any time;
3. Efficiency is the basis of the bank's continuing operations.
For example, if a long-term loan is issued, the interest rate is higher than the short-term loan, and the efficiency is good, but if the loan term is long, the risk will increase, the security will decrease, and the liquidity will become weak. Therefore, the "three sexes" must be harmonious, so that loans can work without problems.
status quo
According to data released by Guangzhou Private Financial Street, the interest rate of small loan companies is "18.72% on the 10th, 21.77% for 1 month, 22.32% for 3 months, 23.19% for 6 months, 24.85% for 1 year, and 25.15% for more than 1 year" The financing guarantee rate is "3.31% within 1 year, 3.46% from 1 year to 1.5 years, 3.63% from 1 year and a half to 2 years, and 3.75% from 2 years to 3 years."
Previously, on June 28, when the data began to be released, the average interest rate of the micro-loan market for the three-month period was 21.97%, and the one-year period was 17.55%. Among them, the interest rate for private loans in March is higher than the one-year interest rate.
Wenzhou's private lending registration service center's private lending interest rate index data also shows that from August 5 to 10, the average monthly interest rate was 1.27%, which was 0.08 percentage point lower than the weekly average interest rate of 1.35% from July 30 to August 3, The average monthly interest rate in July was 1.38%.
According to industry insiders, the macroeconomic situation and the tightness of bank credit are the main factors affecting the activity of private financing. Especially in the context of the declining macro situation, the central bank's monetary policy has made financial institutions relatively abundant in funds, and the difficulty for enterprises to obtain loans from banks has been relatively reduced, which inevitably reduces the demand for funds from private lending channels.
Training
With the spread of the US debt crisis and the European debt crisis, the international financial crisis has intensified, which has led to a global economic slowdown. The volatile external environment has brought challenges to China's economic development. Due to the impact of the financial crisis on the real economy, the crisis of private lending in Wenzhou and other places once again reflected the uneven development of China's financial services.
Microfinance, as a useful supplement to improve the credit financial system and enhance the function of the financial market, has become an important channel for solving the financing problems of small and medium-sized enterprises, helping individual entrepreneurs to drive employment, promoting economic development, and ensuring the improvement of people's livelihood. attention.
In view of this, since the establishment of the China Academy of Small and Micro Finance, it has organized a "tiered series of training courses for junior, middle and senior practitioners of microfinance institutions" to provide hierarchical training for different positions and qualifications of practitioners. By improving the professional quality, business ability and management level of employees, strengthening the level of industry risk control and business norms, promoting the healthy and orderly development of the industry, and playing its due role in building an inclusive financial system.
Financing bottleneck
Financing channels blocked Small loan companies encounter bottlenecks
For microfinance companies, the growth process of microfinance companies has encountered a bottleneck, although it is a best time for microfinance companies. However, under the circumstances of credit crunch and capital shortage, the difficulty of financing and shortage of money will cause public concern. As a government-regulated private financial pilot, small loan companies are also more flexible and rely on accurate market positioning for better results.
Microfinance companies, however, face the embarrassment of new financing channels being blocked, especially the lack of supply in the credit market. Most small loan companies have suffered from the dilemma of lack of money.
Coupled with the various irregular operations of small loan companies, people are worried about the risks of the entire industry, and small loan companies need fast and good development to prove themselves. The small loan market is hot, and small loans in Ordos are still hot.
Xiao Wang opened a clothing store and successively turned to various banks and private lending institutions. The former has smooth approvals and the latter has high interest rates, but the approval rate is fast. The 300,000 funds have arrived on the day. The half-year interest rate is 12%. Anxious. It is also very easy to make money in the microfinance industry. I hope to further increase the registered capital. It is not as easy for the microfinance company to make money as the outside world sees. It is necessary to guarantee the timely disbursement of loans. The competition between microfinance companies and banks is becoming increasingly apparent. The stable yield of small loan companies, coupled with stable yields, has promoted its development. The micro-loan market is also constantly attracting influx of elite talent.
Sunny
As an important part and pilot of China's financial reform, the Wenzhou Private Loan Registration Service Center was established on March 29, 2012, and it has been more than half a year. This financial intermediary has helped to promote the small amount of borrowings. It is also a landmark step.
The loan registration center in Wenzhou operates as a company, and citizens who register with the loan registration center at more than 10,000 yuan are free. At the same time, there are many related agencies such as intermediaries and law firms on the second floor.
As long as the lending behavior conforms to the statutory interest rate, that is, the interest rate for small loans cannot exceed four times the bank's interest rate, both parties who complete the agreement in private can register at the loan registration center. After filing through the loan registration center, the small loan behavior is settled. In the sun.
The purpose of the establishment of the loan registration center is to make the small loans sunny and standardized, and to reduce the investment risks of small loans. Both parties of small loans can talk about the conditions and interest rates of loans through interviews. At the same time, many loan service companies that live in loan registration centers provide notary services, guarantees, and other legal services.
A small loan company that lives in the loan registration center said that the biggest advantage here is that the government recognizes this business model, so the policy risks have been eliminated. And by nature, these lending companies are themselves a service platform. They can find matching products in a large number of commodities, and solve the problem of information asymmetry. The supply and demand sides can obtain loan interest rates and interest, and repay loans in advance. And other information needs.
Risk prevention
  1. Improve and improve relevant policies and regulations to guide the standardized development of small loan companies. Microfinance companies are corporate legal persons registered in the industry and commerce department, which is fundamentally different from formal financial institutions such as banks. Microfinance companies have similar business systems to banks. For the establishment and operation of some small loan companies, refer to relevant regulations for commercial banks. For example, with reference to the requirements of prudent regulatory requirements such as the Guidelines for the Management of Commercial Banks' Market Risks, the Guidelines for the Operational Risk Management of Commercial Banks, and the Trial Measures for the Evaluation of Commercial Banks Internal Controls, establish and improve loan management and internal audit systems, and formulate plans for emergency response to risks. Effectively strengthen internal control risk management. To accrue bad debt reserves, please refer to the Ministry of Finance's Notice on Printing and Distributing the Accounting System for Financial Enterprises (Caihui [2001] No. 49), the Administrative Measures for the Preparation and Collection of Bad Accounts of Financial Enterprises, the People's Bank of China's Guiding Principles for the Classification of Loan Risk, The "Guidelines for the Provision of Loan Loss Provisions for Bank Loans" and the "CBRC Risks" regulations apply. Micro-loan companies have established and improved corporate financial and accounting systems with reference to the implementation of the Financial Rules of Financial Enterprises (Order of the Ministry of Finance No. 42).
  2. Increase support for small loan companies. The business tax and income tax of a microfinance company are equivalent to ordinary enterprises. The overall tax burden is around 30%. If preferential fiscal and tax policies are available, the company's loan interest rates to farmers and small businesses can be reduced appropriately. It is recommended to adopt tax reduction and exemption policies for small loan companies. The relevant policies of the state for rural credit cooperatives and other agricultural financial institutions can be consulted to provide appropriate support in terms of tax reductions and financial subsidies to reduce operating costs and improve profitability. Appropriate incentives can be given to the compliance operations of microfinance companies. For 8-10 years of compliance operation, it is allowed to expand its operation scale and transfer to village and town banks. For example, if Tianjin stipulates that by the end of 2010, microfinance companies meet the requirements of compliance operation and risk prevention standards, each additional 100 million yuan at the end of the year will be financed by the municipal finance of 150,000 yuan; since the opening of the microfinance company, The business tax of the same level is fully refunded in the first two years, and the business tax is reduced by half in the next three years. From the profit-making year, the financial department of the same level is fully refunded in the first two years and the local share of the corporate income tax is reduced. Local share of corporate income tax.
  3. While expanding financing channels, we will strengthen innovation in financial service products. Encourage various financial institutions to issue entrusted and wholesale loans to small loan companies. At the same time, they can give preferential interest rates to reduce their financing costs. Allow small loan companies to introduce foreign capital or other investment entities. We should focus on selecting operating entities that have both financial strength and rich financing business such as loans. While accepting new investments, we should introduce new business ideas to enable new development of the microfinance company's operating methods and risk control. Microfinance companies should combine county economic development with their own business characteristics and development needs, actively explore new credit products on the basis of risk prevention, and meet the needs of credit funds at different levels, making them a new force to support economic development. Realize a win-win situation.
  4. Further clarify the supervision subject and supervision responsibilities, and strengthen the effectiveness of supervision. Clarify the supervisory organization of small loan companies and avoid the situation of "long-responsibility and no-responsibility". Provincial government authorities must effectively fulfill their responsibilities, strengthen supervision of small loan companies, and resolutely put an end to rejection. Establish corresponding regulatory cooperation mechanisms. That is, the establishment of a joint conference system involving the provincial financial office, the People's Bank of China, the Banking Regulatory Bureau, industry and commerce, finance and other departments, and regular or irregular meetings of heads of relevant regulatory departments to jointly study the problems existing in the operation of small loan companies Join forces to implement supervision. Formulate detailed implementation rules for the supervision of small loan companies to eliminate regulatory blind spots. Supervision departments should conduct scientific planning for the development of small loan companies, strictly review and approve the management of small loan companies, and avoid overheated development and excessive growth led by local government interests. Due to the limited source of funds, in order to absorb funds after the establishment of a small loan company, it may touch the two high-voltage lines of disguised deposit absorption and disguised illegal fund raising, which will eventually lead to systemic risks. Therefore, the shareholders of a small loan company must be a strong enterprise or an individual with the ability to take risks. Therefore, the qualifications of shareholders must be scrutinized, especially the largest shareholder, and admission is properly controlled.
Emerging channels
Online lending is rapidly expanding as an emerging financing channel. As of now, many e-commerce companies such as Alibaba have launched similar services. Alibaba teamed up with China Construction Bank and Industrial and Commercial Bank of China to launch a variety of loan products, including e-loan-link, Dunhuang.com and CCB launched e-bao-link network credit products, and ICBC s on-net-link "Products and more.
SMEs
Analysis of the difficulty of small loans has almost become a common problem for many small and medium-sized enterprises, and the lack of funds has caused bottlenecks in corporate development. With the recovery of the global economy, due to a series of reasons, there are many uncertain factors in the development of China's economy, especially SMEs. Although our numerous banking institutions continue to strengthen the support of funds, it is difficult to meet the needs of all SMEs. In addition, the problem of information asymmetry in China's small and medium-sized enterprises and the shortcomings of weak ability to resist risks, so the difficulty of financing of small and medium-sized enterprises is still its bottleneck.
The president of a bank suggested that SME financing can be reduced by strengthening effective risk-sharing and other methods, that is, solving the difficult situation of SME financing through the following three points.
First, small- and medium-sized enterprises' small loan projects also need to reduce risks by strengthening effective risk sharing. At the same time, effective government compensation mechanisms are needed to enhance the confidence of many commercial banks in small loans. In order to help small and medium-sized enterprises to raise funds quickly, the government also needs to share financing risks with banks.
Secondly, small loans are expected to introduce social capital resources, which is what we usually call private lending, that is, using private capital to improve SME loans. Maybe our banks cannot help all SMEs, especially small and micro enterprises. Private borrowing can be a powerful supplement to help finance.
Third, small and medium-sized enterprises' loans need to conscientiously implement the opinions and recommendations of the Three Measures and One Guideline of the CBRC, and reasonably control the scale and rhythm of credit. The effective control of the same aspect helps the small and medium-sized enterprises to guarantee the effective flow of small loan funds, better promote the upgrade of their product structure, and effectively promote the stable development of small and medium-sized enterprises.
Legal Issues
A microfinance company is a special institution that focuses on providing small loans. It is a corporate entity established for business purposes for profit. Its emergence in China has its special background. The reason why microfinance companies have gained more and more attention from society is that it has found a profitable path for microfinance through effective business design.It not only provides financial support for the production of farmers or microenterprises and also realizes its own Continuous development has found a new investment channel for China's rich private capital. The emergence and development of microfinance companies is not only an innovation in the form of financial organization, but also a turbulent financial system, but this innovation has challenged the current financial legal system. Although small loan companies are engaged in financial business in theory, they can not obtain a financial license in practice and do not have the legal status that financial law should confer. The ambiguity of legal status not only makes it impossible for the right form of management autonomy to be clearly affirmed by law, but also leads to a chaotic operation supervision. The policy allows small loan companies to obtain higher loan interest rates, but it has a strong conflict with the current legal system. The clear operation autonomy is the right guarantee for the survival and development of microfinance companies; the legal choice of the operating supervision entity is the premise to ensure the orderly and stable operation of microfinance companies; the arrangement of higher loan interest rates is realized by microfinance companies The main issues that must be clear for the sustainable development of profit protection are contradictory answers in the existing legal norms. This leads to a paradox: on the one hand, it recognizes the legitimacy of its financial activities, and on the other hand does not grant it the corresponding rights to engage in such activities. Therefore, it is necessary to clarify and rectify these contradictory norms from the basic principles of jurisprudence, and on the basis of this, put forward some sound suggestions to reconstruct the legal system applicable to small loan companies.
application process
The basic process of applying for personal unsecured microloans is as follows:
First submit the loan application intention online through the bank branch. The bank credit commissioner will contact the loan applicant and ask the loan applicant to provide the following personal information:
  1. personal I.D
  2. Proof of employment
  3. Proof of income
  4. Other personal data that the bank may require
If an individual has no serious credit overdue records and can provide the above three types of personal information, they can apply for personal unsecured microloans. I believe that personal unsecured microloans can be accepted by more and more young white-collar workers. , Enjoy quality of life in advance and improve quality of life.
Business loan calculator:
When calculating the repayment method of equal principal and equal principal and interest under commercial loan conditions, the monthly payment, total interest and total repayment of each period of commercial loan.
Interest rate regulations
According to relevant laws and regulations, "the interest on private loans may be appropriately higher than the bank interest rate, but the maximum cannot exceed 4 times the bank loan interest rate for the same period, and the excess interest laws are not protected". The highest annual interest rate of sincerity loans is 4 times the bank's one-year interest rate. The current highest annual interest rate is 24%.
Microloans

Note:
1. Due to the uncertainty in the adjustment of bank interest rates, the subsequent adjustment of interest rates on sincerity loans will be delayed for a period of time.
2. The interest rate on previous successful borrowings will not be affected.
Bank process
Bank micro-loans are business-type loans with individuals or families as their cores. The main service targets are the majority of industrial and commercial self-employed individuals, small workshops, and small owners. The amount of the loan is generally less than 200,000 yuan and more than 10,000 yuan.
The amount of bank microloans may not be large, but its role cannot be underestimated, as can be seen from the example of Yang Shiqing above. However, more people are just obsessed with the bank's small loans, and do not know how to handle them, and what the process includes. The bank's small loan application process mainly includes the following steps:
First, the borrower submits an application to the bank branch where the small loan is opened. At the time of application, the borrower should bring ID and other relevant information, and if it is a business, he also needs to bring a business license.
Second, after receiving the lender's application, the bank investigates the lender. Third, through the bank's investigation, after approval, sign a loan contract with the bank.
Fourth, the bank lent money, and the lender successfully obtained the loan.
The above is just the general process of a bank's small loan. The regulations of different banks may be slightly different, and the information required may be different. Therefore, those who want to borrow can go to the website or branch of the bank to make a special consultation to ensure that they can get a loan smoothly. In addition, banks will require lenders to meet certain conditions, such as age conditions, income levels, and ability to repay loans or interest rates on early repayment.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?

RELATED ARTICLES