How to define the business scope of microfinance companies?

First of all, a formal microfinance company is a legal entity that engages in microfinance business with its own funds with the approval of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government. Within the scope prescribed by the state, it is not allowed to absorb savings and deposits in any form. Anyone who absorbs savings or manages money in disguise is not a formal microfinance company.

Secondly, within the business scope of the business license, regular microfinance companies will definitely have: issuing microfinance. If the business license does not have this business, it is an illegal microfinance company.

Third, the microfinance company is a special name for approval. Nowadays, many microfinance companies mentioned in the society are unqualified, that is, institutions or individuals illegally engaged in lending. The name on the business license must be XXX Microfinance Co., Ltd. or Limited by Share Ltd., which is a formal microfinance company.

In recent years, all kinds of institutions and individuals in society have taken high-interest loans, illegal fund-raising, violent collection, even routine loans, naked loans and other illegal acts in the name of microfinance companies, all because people can't understand and distinguish the real microfinance companies, which has also brought a lot of stigma and accusations to many formal microfinance companies. But in fact, formal microfinance companies can't satisfy or support large farmers and herdsmen with their own money.

As an old and small lender who has been engaged in the small loan industry 13 years, I always hope that everyone can really understand our whole industry, instead of being deceived by illegal lending organizations and hurt by bad organizations!