Research On Legal Problems Of Micro-loan Company

The micro-Loan company comes into being in order to solve the bottleneck-financing difficulties of SME and the "three rural". It not only can absorb private capital, regulate private credit, compress survival space of underground financial,also can meet the financial needs of SME and the "three rural" and resolve the current tension between capital supply and demand. Since 2005, my Government attaches great importance to carry out the micro-loan companies."On the pilot micro-credit company guidance"issued in2008 and"small loans company restructuring provisions for the establishment of village banks"issued in 2009, which provided a good opportunity for the rapid development of micro-loan company. However, during the embryonic stage,the sustainable development of micro-loan companies are hampered by unsound institution, unknown legal status, insufficient funds, imperfect regulatory regime and so on. It is necessary to clearly define the status of micro-loan companies, rich funds sources, set a reasonable market-oriented interest rates, establish an effective monitoring system ,because unified legal system can sure micro-loan company's healthy and orderly development.This article is divided into four parts:The first part,the development overview of micro-Loan company. It demonstrates the necessity for the development of micro-loan company, then it introduces the development status of micro-loan company.The second part,The legal issues that exist in the development of micro-loan company. This section analyzes the major legal issues that impact the development of micro-loan company, these problems include: lack of specific legislation, vague legal status, insufficient funding, lots of limits, Imperfect structure of internal governance and defective regulation.The third part, The operation and experiences of micro-credit institutions abroad. This part analyses the mode of micro-lending institutions which exists in Bangladesh, Indonesia, Bolivia and the U.S, then sums up their successful experience. I hope it can provide reference to the improvement of our country's micro-credit legal system.The forth part, Specific recommendations of the legal system of China's micro-loan company's improvement. In order to address the legal issues of micro-loan company,it presents some comprehensive proposal based on foreign experience from different aspects. Combining the actual situation of China's financial system and the current development of micro-Loan company, this paper demonstrates the law problem of micro-Loan company by the methods of comparative analysis, empirical analysis and internet survey, it also makes recommendations on improving and perfecting the legal system of China's micro-loan company from China's national conditions. The expectation is to promote the healthy development of micro-loan companies and more perfect financial system.