What is microfinance?

Microfinance is a comprehensive consumer loan with individuals or enterprises as the core. The loan amount is generally more than 1, yuan and less than 2, yuan.

Features:

1. Simple procedures, fast lending process and simple procedures;

2. The repayment method is flexible;

3. The loan scope is wide;

4. Flexible marketing mode;

5. The loan quality of microfinance companies is high;

6. Small loans have little social risk.

Extended information

Small loans for public welfare are problematic and insufficient in policy. The current policy, for small public loans of social enterprises, does not distinguish from commercial small loans and makes special provisions, which is not conducive to promoting different types of small loans to play their respective roles.

Although China's public welfare microfinance has encountered many difficulties, it is still carrying forward with a heavy burden, doing its best, voluntarily practicing the inclusive finance, and serving the middle and low-end customer groups in inclusive finance, but it has not attracted enough attention from the government regulatory authorities and enough policy support.

The existing public small loan institutions have served more than one million low-income and poor groups in poor areas, which is the significance of public small loan.

Baidu encyclopedia-micro-credit loans