Legal basis: Interim Provisions on the Administration of Loan Companies
Article 2 A loan company refers to a non-bank financial institution established in rural areas by domestic commercial banks or rural cooperative banks with the approval of China Banking Regulatory Commission in accordance with relevant laws and regulations, which provides loan services specifically for county farmers, agriculture and rural economic development. The loan company is a limited liability company fully funded by domestic commercial banks or rural cooperative banks.
Article 3 A loan company is an independent enterprise legal person, enjoying all legal person property rights formed by investment, enjoying civil rights according to law, and independently bearing civil liabilities with all legal person property. Investors of loan companies shall enjoy the rights to return on assets, make major decisions and choose managers according to law.