What is microfinance?

Basic conditions of microfinance: Shanghainese, with their own houses or parents' houses, generally do not read the credit report, and generally calculate at 0.5% daily interest. It is common to repay the principal and interest in equal installments, and the first repayment will be deducted (stipulated), plus agency fees, post-loan management fees, company service fees, etc. , generally between 8% and 12. For example (regular companies calculate by positive deduction): borrow 0.5% of the daily interest of 65,438+00,000 yuan and divide it into 65,438+00 installments every week. If the principal and interest are equal for seven days a week, the first installment is still1000+50x7 =135010 week, that is 13500. The actual amount received by the borrower, after deducting the miscellaneous fees and the down payment10000-1000-1350 = 7650, is the actual amount. It means that the loan company will earn13500-7650-1350 = 4500. The loan term is 10 week = two and a half months =70 days. According to this ratio, the annual interest rate is 235%. This calculation method of interest, commonly known as "positive deduction" in the industry, is to calculate interest according to your actual loan amount. In fact, microfinance companies rarely do this, and almost all calculate interest according to "reverse deduction", that is to say, the loan principal plus the total interest calculated according to the loan cycle is the sum of two figures, plus compound interest, including platform fees, agency fees, management fees, overdue fees and so on. So microfinance used to be commonly known as usury, and it has a new name. If you contact such a loan company, please carefully consider the consequences.