1) On the one hand, the borrower has to pay a high service fee, which is shared in the current month, with high interest and liquidated damages for early repayment.
Analysis: At present, there is no legal provision on P2P lending in China, so the CBRC can't control the edge of the law.
This market is chaotic, the salesman's quality is poor and the customer's qualification is poor, at least I think so.
2) On the other hand, lenders enjoy higher income than bank wealth management products, but bear relatively higher risks.
Analysis: The annual income of general P2P wealth management products 10%~20% is much higher than that of bank wealth management products. As the saying goes, the wool comes from the sheep, and the profit comes from the interest paid by the borrower. It is easy to have bad debts and reduce income because of poor customer qualifications.
3) P2P micro-loans are aimed at customers that banks can't do, such as poor credit records, no stable jobs, no fixed punch-in income and no fixed assets. Companies that use P2P loans make a profit in the process of borrowing.
PS。 Violation of rules and regulations, high profits and high risks have their value, but without good management methods, the company may not be formal because the industry is informal.