Small Loan Company's Legal Regulations

Micro-lending company is an important component in the micro-credit services torural residents and small and medium enterprises（SMEs）. It provides small loans tolow-income groups and SMEs. Due to many immature situations at the pilot phase,many serious and urgent problems and issues have emerged in this field, such as theshortage of funding and the lack of legal status and etc. If not solved timely, theseproblems will surely hinder the development of Micro-lending companies. Therefore, inorder to identify the root causes of those problems, it is necessary to summarize andanalyze the current development status of Micro-lending companies and the relevantpolicies and regulations. By comparing with foreign models, analyzing Chinese socialsystem and drawing on international experiences, this paper tries to find a commonmechanism for Micro-lending companies. It suggests a special legislation to completeand perfect the relevant legal system (including the monitoring system, legal status andmanagement mechanism, etc.) so as to promote a health and long-term development forMicro-lending companies.