Research On Legal Problems Of Small Loan Company In China

Since entering China in 2005 and gradually carrying out the pilot work,small loan companies have solved the financing difficulties in the financial market to a certain extent and provided a beneficial supplement to the financial market.Released in May 2008 on the small loan company pilot guidance "(hereinafter referred to as the" guidance ")makes the petty loan company got a rapid development in our country,the low-income groups and small and medium-sized enterprise financing difficult problem to find a solution,in some parts of the development of farming and animal husbandry has been the key source of funds,not only filled in the financial sector in the microfinance market demand,has gradually become an important part of financial market in China.However,since 2017,the growth rate of small loan companies has slowed down significantly.Every year,hundreds of microfinance companies are eliminated from the market,and the competition in the entire industry is relatively high.The development pressure of microfinance companies is increasing,and their social image is relatively poor.The existing problems are manifested in the following: many non-compliant microfinance companies have been established,microfinance companies have difficulty in recovering loan funds,and lack a high level.Advanced laws effectively regulate them.With the continuous advancement and deepening of the special rectification of the online loan industry at the end of 2019,the transformation into a small loan company may become the ultimate outlet for some platforms.In this context,when faced with some of the more significant development problems of small loan companies themselves,they should actively explore future development strategies.This article makes a preliminary understanding of the definition,characteristics,and value of small loan companies by querying relevant literature.Based on this,it makes targeted comparisons with rural credit cooperatives and commercial banks.Loan institutions more clearly reflect the legal problems existing in China's small loan companies.The results show that the status of China's microfinance companies is not clear enough,the basic legislative norms are lacking,and the legislative level is relatively low.The problems such as the existing deficiencies and regulations are highlighted,and targeted solutions are provided accordingly.Opinions and suggestions,through perfecting and improving the legal regulations on small loan company companies,strengthening the supervision of small loan companies,implementing the concept of inclusive finance,with a view to achieving sustainable development of microfinance companies,and truly playing their role in the "agriculture,rural areas and farmers" And small business financial services.