Concept of Micro and Small Loans

Definition of Inclusive Micro and Small Loan

"Inclusive Micro and Small Loan generally refers to Inclusive Micro and Small Business Loan, which is a kind of loan issued by the bank to the micro and small enterprises for their production and business activities. When applying for this kind of loan enterprises can enjoy a certain loan interest rate concessions, so that after applying for the loan enterprises spend less interest, is also very favorable to the development of enterprises."

I: Loans are banks or other financial institutions at a certain interest rate and must be returned and other conditions of lending monetary funds a form of credit activity. Loans in a broad sense refers to loans, discounting, overdrafts and other lending funds in general. Banks through the loan will be concentrated currency and monetary funds put out, can meet the social expansion of reproduction on the need for additional funds, promote economic development, at the same time, the bank can also be obtained from the loan interest income, increase the bank's own accumulation.

Two: microcredit review risk

Loan risk arises, often in the loan review stage began, comprehensive judicial practice occurs, it can be seen, in the loan review stage of the risk appeared mainly in the following links.

(a) the review of the content of the omission of bank loan reviewers hang up, resulting in credit risk. Loan review is a detailed work, requiring the investigator on the qualifications of the loan subject, qualification, credit, property status of the systematic examination and investigation.

(ii) in practice, some commercial banks do not have due diligence, and the relevant loan examiners, often pay attention only to the identification of documents, but the lack of due diligence investigation, so that it is difficult to identify fraud in the loan, and it is easy to cause credit risk.

(c) Many errors of judgment are caused by the bank's failure to take expert advice on the content in question, or by the professional judgment of professionals. The process of loan review, not only to find out the facts, but also should be on the relevant facts of the legal, financial and other aspects of professional judgment. And in practice, most of the loan review process is not very rigorous and in place.

Three: the legal content of the pre-credit investigation

(a) on the borrower's legal establishment and continued effective existence of the review of the borrower's legal status. If it is a business, it should review whether the borrower is legally established, with or without the qualifications and qualifications to engage in related business, check the business license, qualification certificates, it should be noted that the relevant certificates and licenses are subject to annual inspection or relevant validation.

(2) on the borrower's creditworthiness examine whether the borrower's registered capital is compatible with the borrowing; review whether there is an obvious situation of evasion of registered capital; previous lending and repayment; and the quality of the borrower's products, environmental protection, tax payment, etc. There is no illegal situation that may affect the repayment of the loan.

(3) On the borrower's borrowing conditions whether the borrower has opened a basic account and a general deposit account in accordance with relevant laws and regulations; whether the borrower's (if a company) its foreign investment exceeds 50% of its net assets; whether the borrower's debt ratio is in line with the lender's requirements;

(4) On the guarantee For the guarantee guarantee, the qualification, credibility of the guarantor, ability to fulfill the contract is investigated.

What is the definition of a micro and small business owner's loan and what exactly qualifies as a micro and small business owner's loan?

Small and microenterprises is a collective term for small businesses, microenterprises, and self-employed businesses. The criteria for MSMEs are that they belong to a non-restricted and prohibited category of industries nationwide and that they have annual tax payment conditions. And meet the following three conditions:

1, the enterprise taxable income of less than 3 million;

2, the number of employees in the enterprise is less than 300;

3, the total amount of current assets is less than 50 million.

Now there are a lot of credit platforms to help small and micro enterprises, remember to choose a formal platform, such as the degree of small full of financial, high amount of interest rate is low, it is understood that the degree of small full of financial credit users, seventy percent of small and micro entrepreneurs, the big brand is more at ease.

This answer is provided by Kangbo Finance, which focuses on the interpretation of financial hotspots, financial knowledge and popularization of science and technology, adhering to the professional, the pursuit of interesting, do people understand the financial content, with a vivid and diverse way to convey the value of finance. I hope this answer will help you.

What is microfinance?

It's about making loans to small and medium-sized enterprises (SMEs)! Now and a lot of loan companies have this business, belonging to the individual businessman, limited company loans, because this kind of business in the operation of the words there will be a lot of circumstances need, so there is this market. If you need to @ me! 186.wang4.0462269!