The Research Of Credit Risk Control Of Microcredit Company's Credit Business

Microcredit is a kind of unsecured, unsecured credit loans, convenient operation, quick examination and approval financial support for the low-income people and SMEs which have been rejected by the formal financial institutions for long-term to improve living and developing production. However, the characteristics of microcredit also determine its high risk. With the microcredit companies ended their pilot phase and won formal legalization in 2008, private capital had been poured into this industry sector from all works of life, the microfinance companies blossoming everywhere and their credit business developing very well. Subjective judgment methods which were used by the loan officers and approval experts to decide the amount of fund in the past could not adapt to the rapidly expanding volume of business needs, therefore we urgent need to come up with a control model which combine with the quantitative and qualitative analysis of credit risks.Firstly,the paper sets out the significance of this topic and the credit risk assessment methods of domestic and international which provide a reference for the study of the characteristics of microcredit companies for the credit evaluation model, of course, the paper briefly describes its research methods, technical routes and framework papers. Secondly,the paper introduced the concept of defining small loans, business features , operation mode and microcredit company's domestic and international development process, and elaborated the microfinance company in Shenzhen as a representative of the credit company and the status of risk control mode, and their deficiencies were studied.In order to avoid credit risks better and improve the operational efficiency of the microcredit loans, it's necessary for us to introduce quantitative analysis method. Through the study of the domestic and international credit risk control method, this paper puts forward with a microcredit loans of credit risk control mode by means of the combination of expert method and credit rating method.Credit rating method is a perspective from quantitative credit risk assessment method, which is widely used in developed countries of the credit loan and credit card and have many similarities with China's microcredit system, therefore it has a great significance and feasibility, but China's microcredit has its own characteristics, such as China's credit mechanism is not perfect, highly mobile population, income instability and so on. Therefore this paper is committed to establishing a credit facility for SME credit scoring method, given the small loan company's main customers are small business owners, in the index screening, according to the lender is a small business owner, the establishment of index system is used to match the index, the index weight determined steps, using analytic hierarchy process。The value of this paper lies in the situation that although it could not establish a comprehensive credit system for the migrant workers, small business owners and other low-income people in short term, found a combination of qualitative and quantitative method of credit repayment of the loan applicants to predict their loan repayment situation, then changed the past's solely on qualitative analysis for approving loans, risk control deficiency, attained to reduce the microcredit company's credit risk.