Do microfinance companies belong to private lending?
Usually, small loan companies do not belong to private lending, mainly because most small loans and private lending do not belong to the same subject. Although small loan companies are legal persons with lending qualifications approved by financial supervision departments, they are still different from private lending.
Is the microfinance company a financial institution?
Microfinance companies belong to financial institutions. The Supreme People's Court clearly stipulates that seven types of local financial organizations, such as microfinance companies, financing guarantee companies, financial leasing companies, local asset management companies, commercial factoring companies, regional equity markets and pawn shops, which are supervised by local financial supervision departments, belong to financial institutions established with the approval of financial supervision departments.
Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business. Different from microfinance, private lending refers to the financing behavior between natural persons, legal persons and other organizations.
Summary: There is no legal restriction on the borrower of private lending, that is, the borrower can be an individual or an enterprise or other organization. A small loan company is an enterprise legal person, which has independent legal person property, enjoys legal person property rights, and bears civil liability for its debts with all its property.