On December 1, the Office of Leading Group for Internet Financial Risk Remediation, the Office of Leading Group for P2P Online Loans Risk Remediation issued a Notice on Regulating "Cash Loans" Business, and carried out the rectification and reorganization of online microfinance jobs.
1. Stop the new batch of Internet (Internet) micro-loan companies, cash loans to the stock institutions and operations to regulate and rectify.
2. Suspension of newly-approved small-loan companies Inter-provincial (autonomous regions and municipalities) carried out micro-loan business. Has approved the preparatory establishment, suspension of approval of the opening.
3. Suspend payment No specific scenario relying on, no designated use of network micro-loans.
4.Failing to obtain the qualifications for operating lending business according to law, no organization or individual may operate the lending business.
Cash loan refers to small cash loan business, with convenient and flexible loan and repayment methods, with real-time approval and quick accountability.
Cash loans on the market can be divided into two categories: one is the cash loan products provided by financial institutions such as banks, such as Micro Bank loans, China Merchants Bank e lending, five thousandths per day, the annualized interest rate is usually 18 %about. The other is non-bank financial institutions to carry out business, such as the fun shop to provide short-term, high interest rates, low guarantees, quick financing small loans.
As the cash loan system is not perfect also brought many problems:
Interest rates rising, vicious debt repayment, fraud loans, personal information disclosure.
Regulators for the current supervision of cash loans from the following aspects:
The first is the license requirements. Second, the limit on the maximum loan interest rate. Third, the norms of the cooperation model. Fourthly, regulators have imposed restrictions on the source of funds for "cash loans", requiring financial institutions not to provide them with funds. |
