Peer-to-peer credit refers to the idea that individuals have money and financial investment. Through the third-party network platform, they lend money to other people with borrowing needs by means of credit loans.
Microfinance is an operating loan with individuals or families as the core, and the loan amount is generally more than 1 000 yuan and less than 200,000 yuan. Microfinance is an extension of microfinance in technology and practical application. Microfinance in China: It mainly serves agriculture, rural areas and small and medium-sized enterprises. The establishment of small loan companies has rationally pooled some private funds, standardized the private lending market, and effectively solved the financing difficulties of agriculture, rural areas and small and medium-sized enterprises.
Characteristics of P2P Credit and Microfinance
Characteristics of P2P credit:
Direct transparency-Lenders and borrowers directly sign person-to-person loan contracts, so as to know each other's identity information and credit information one-to-one, so that lenders can know the borrower's repayment progress and the improvement of living conditions in time, and experience the value they have created for others most truly and intuitively.
Credit screening-In P2P mode, lenders can evaluate and select borrowers' credit, and borrowers with high credit rating will be given priority, and the loan interest rate may be more favorable.
Risk diversification-the lender distributes funds to multiple borrowers and provides small loans at the same time, so the risk is dispersed to the greatest extent.
Low threshold and low channel cost-P2P lending makes everyone a disseminator and user of credit, and credit transactions can be carried out conveniently and everyone can participate easily.
P2P credit has been accepted and operated by many people because of its many advantages, and it has become a very popular method to obtain funds!
The characteristics of microfinance:
1, with simple procedures, fast lending process and simple procedures;
2. The repayment method is flexible;
3. Wide loan scope;
4. Flexible marketing model;
5. The loan quality of microfinance companies is high;
6. Small loans have little social risk.