Who approves microfinance companies?

Legal analysis: To apply for the establishment of a small loan company, a formal application should be made to the competent department of the provincial government, and after approval, an application for registration should be made to the local administrative department for industry and commerce to obtain a business license. In addition, relevant materials shall be submitted to the local public security organ, the agency of China Banking Regulatory Commission and the branch of China People's Bank within five working days.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 668 A loan contract shall be in written form, unless otherwise agreed between natural persons.

The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Article 669 When concluding a loan contract, the borrower shall, at the request of the lender, provide the true information about the business activities and financial status related to the loan.