Study On The Legal Issues Of Small Loan Companies Under The Inclusive Finance

The establishment of small loan companies was originally intended to serve and support the financing vulnerable groups, such as the “three rural”, small and medium-sized enterprises and individual industrial and commercial households. Small loan companies began to enter the stage of trial operation since 2005, have achieved remarkable results, and promote the development and prosperity of the county economy in a certain extent. Especially after 2008, the People’s Bank of China had issued guidance on the small loan company pilot. Small loan companies developed constantly like bamboo shoots after a spring rain. However, in our country the current legal system of small loan companies is not perfect. In the process of running the company is easy to produce legal disputes. Therefore, it needs to improve the legal system of small loan companies and let small loan companies develop steadily and rapidly. This paper is based on the perspective of inclusive finance and analyzes the small loan company’s development in China. Through the research of legal loopholes in the small loan company, then analyzes unfavorable reasons in the development of the small loan companies. Meanwhile, learn from foreign legal practice in the aspects of the small loan companies, make up for the deficiency of the legal aspects of the small loan companies in our country and making small loan companies play a better role in the inclusive financial system, promote the progress and development of Chinese financial industry.This paper consists of five parts. The first part is the introduction, including the significance of the research background, domestic and foreign research, comparative research methods, etc. The second part is the specific introduction of the related theory. First of all, make a detailed definition of the small loan companies and financial inclusion,and introduce the nature and orientation of small loan companies in the inclusive financial system. Secondly, compares other financial institutions with small loan companies and analyzes the features and advantages of small loan companies. Finally, elaborate the significance of small loan companies. In the third part,analyze the current developing situation and the existing legal loopholes of small loan companies in inclusive financial system. First of all, discuss the development of small loan companies in detail.Then, explain and analyze the existed legal problems of small loan companies, such as many problems like the sources of funding monotonous and the relevant legal system is not perfect etc. The forth part is the practice of micro-finance institutions in foreign counties and its enlightenment to China. First, introduce the operation of micro-finance in Bangladesh, then summarize and analyze the successful experiences. Second, analyze the rapid development of the Bolivia micro-finance operation model in recent years. Third, make study on relatively perfect legal system of micro credit in the United States, then pointed out its success. Fourth, analyze and summarize the success of foreign countries in the aspects of the implement in the micro-finance, so as to provide guidance for the operation of the small loan companies in our country. In the fifth part, put forward some suggestions and methods in the legal aspects of the problem of the small loan company. At the institutional level, we should further improve the legal system, to provide protection for the inclusive financial system and make the law of small loan companies more perfect and complete. In reality, we should establish the legal status of small loan companies to make the financing channels more diversified. And make clear the main legal supervision of small loan companies, improve the matching legal system.