Study On Legal Issues Of Micro-credit Business In China

Micro-credit is a kind of financial service for low-income groups and smallenterprises, by giving self-development and self-employment opportunities to themajority of low-income people, is both a financial service innovation, and also animportant tool for poverty alleviation. Since entering the country, micro-credit haspromoted the development of China’s rural financial system and plays an importantrole in building a harmonious society. In recent years, the micro-credit industryflourished in China, the entities of the new micro-credit booms everywhere, hasalready obtain a certain amount of social and economic benefits, and welcomed by themarket and the vast majority of micro-credit clients. However, there are still manyproblems in China’s micro-credit developing process, if the problems can not beresolved, it will obstacle the development of micro-credit. Therefore, it is necessary tolearn from the successful experiences of the foreign operation of micro-credit,combine with China’s actual conditions, formulate a unified legal system ofmicro-credit, and establish an effective regulatory and legal system.This paper is divided into four parts: the first part is the overview section. Thesecond part is the value of choice for micro-credit and the legal principles that shouldbe followed in the legislative process in the micro-credit. The third part is China’smicrofinance development status and legal problems arising from existing legaldocuments of the sort. The fourth part is the main part of the paper. It analyzes issuesthat exists in micro-credit business and gives legislative proposals.