Legal Issues Of The Loan

In recent years, with the reform of the financial system and the joint-stock ofthe four state-owned commercial banks, a lot of branches of grass-roots institutionsmergers, the expansion of joint-stock commercial banks, the object of loans graduallyconcentrated in the high-quality customer, large enterprises and projects, and thesupport of the county economic weakens, SMEs and farmers are caused financingdifficulties. Financial services in rural areas lags far behind the economicdevelopment, resulting in unusually active private lending. According to statistics, thefinancing of1/3of SMEs and more than half of the farmers comes from privatelending. Due to a large number of private lending drifted away from the nationalmacro-control, the microfinance run by private capital loans carries out in full swingup.I have been concerned about the development of small loans, the center ofgravity lies in the characterization of small loans, risk of legal control and regulationsystem. I focus on exploring the legal control of the small loan companies’risk. It hasa certain theoretical and practical significance in the theoretical guidance of the smallloan companies’further development.In this paper, the legal problems of small loans for the study, I systematicallyexpounded the legal issues and risks faced by small loans that may exist. I aimed atproviding the theoretical and practical basis for enhancing the operation of themicro-credit and the improvement of rural micro-credit institutional norms andhealthy development.The paper is divided into three parts, the first part mainly talkingabout small loans Overview This section describes the concept and characteristics ofsmall loans and its legal relationship, whereby the reader first microcredit preliminarycognitive. The second part focuses on small loans’legal system and the practicalproblems, first I roughly talk about a list of the relevant provisions of the micro-creditat this stage, and then pointed out that the real problem in the legal system of smallloans. Finally, the third part, which is part of the focus of the full text. Against thelegal problems for the second part, I put fowared the feasibility suggestions andcountermeasures. I first established the legal status of the micro-credit and small loans,then I raised legal regulatory for the small loans. Finally, show that the point of view,how to guard against the risk of small loans may face.