Current knowledge of loans from microfinance companies

What is a loan company? What Are the Benefits of a Loan Company? Are microfinance firms reliable? Let me ask you a few questions about loan companies.

A microfinance company is a limited liability company or a public limited company which is invested and established by natural persons, legal persons and other social organizations, does not absorb public deposits and operates a microfinance business. Compared to banks, microcredit companies are more practical and faster, adapted to the capital needs of small and medium-sized enterprises and industrial and commercial households. Compared to private loans, microloans are more standardized and interest on loans can be negotiated by both parties.

In a cash company where unsecured loans are becoming more popular, many people will seek financial help from small loan companies when they don't have enough funds to borrow from banks.

Advantages

1. Low application threshold. Compared to demanding banks, they are more accessible. Some borrowers with lower income or lower wages in the form of cash payments (available for 3 to 6 months of self-storage) can all obtain loans directly through small loan companies.

2. The loan speed is fast. The bank review process is strict and cumbersome, but lenders are on the contrary, and their relatively high working efficiency has undoubtedly increased the speed of lending. Therefore, friends who are in urgent need of money may consider applying for loans from these institutions.

3. Loan information will not be included in the credit information system. Although the credit information system is maturing, there is still room for improvement. The reason is that any credit transaction between the borrower and a credit institution outside the bank will not be recorded in the credit reporting system and will of course not be reflected in the credit report. This means that the borrower's debt situation and delinquent behavior will not only benefit from total "privacy", but will also help the borrower to borrow money from other institutions.

Pay attention to collateral and check the credit report

Banks with high thresholds not only pay attention to the borrower's repayment capacity, but also pay attention to their good personal credit. So how do small loan companies treat it? If the borrower is unable to provide a guarantee approved by the lending institution and lacks integrity, it will essentially be refused loan. But if there are collateral, the borrower can get different loan results. Some small loan companies or guarantee agencies may lend you money, but as a general rule, the loan amount will not be too high, it may be around 50% of the value of the collateral.

Third-party lenders cannot download credit information like banks, but that doesn't mean they can't view credit reports. In other words, the third party lender will no doubt ask to check the credit report of the applicant before lending. If it is found that the applicant has excessively overdue repayment behavior in connection with the bank loan, he may also consider issuing the loan.

Steps to Apply for a Small Loan

1. Acceptance of the request

Once the borrower has submitted the microcredit application to the microcredit bank, the personnel responsible for managing the situation will present the borrower with the conditions of the application and the duration of the microcredit, and will carry out a preliminary examination of the conditions, qualifications and application documents of the borrower;

2. Review again

In accordance with applicable regulations, handling personnel take reasonable measures to verify the authenticity of the materials submitted by customers and to assess the claimant's ability to reimburse and their willingness to reimburse;

3. Approval

The authorized approver will approve and ultimately determine the client's overall credit limit and the credit validity period based on the client's credit rating, economic condition, creditworthiness and guarantee;

4. Distribute

Once the loan conditions have been implemented, the client can contact the loan bank at any time according to the payment conditions;

5. Post-loan management

The loan bank will supervise and inspect the borrower's income, userloan ion, etc. in accordance with the relevant loan management provisions, and the results of the inspection will be recorded in writing and archived;

6. Loan recovery

According to the repayment plan and the repayment date stipulated in the loan contract, the borrower must repay the principal and interest in full and on time by the repayment due date, and the micro-loan process ends .