I. Sources of funds
Banks are more influenced by national policies. Borrowing funds mainly come from depositors' deposits, and sometimes there are some deviations. Banks make profits by earning spreads. Consumer finance companies are not allowed to take deposits according to the regulations of the CBRC, and the lending funds come from their own funds invested by shareholders. Therefore, the larger the scale, the more sufficient the funds, and the higher the down payment ratio.
Second, the application threshold
Anyone who has applied for a bank loan knows that it is more difficult to apply for a consumer loan if there is no collateral in his name, because these products mainly serve middle and high-end customers among bank customers, with stable income sources and good credit information. In contrast, consumer finance companies have the characteristics of inclusive finance. They mainly serve low-end customers, and anyone can handle it. As long as they have good credit, they can get loans.
Third, the speed of lending
Due to the complicated bank approval process and strict risk control, the loan approval speed is very slow, and the specific number of days depends on the situation. The biggest feature of consumer finance companies is that they can make payments quickly. Some consumer companies' products can arrive in a few minutes at the earliest, which can solve many people's financial problems.
Four. length of maturity
The loan period of consumer finance companies is relatively flexible, and it is generally repaid by installments, ranging from 1 to 3 years, because the loan amount is relatively small and the repayment pressure is not great. Most products can be borrowed and returned with daily interest, which is suitable for short-term turnover.