1. Formal loan procedures are complicated, and there are many supporting materials to be submitted. Formal lending institutions will examine the borrower's repayment ability and credit status when handling small loans. If the borrower only provides the ID card, the lending institution can't check your repayment ability.
2. Formal lending institutions will not charge any fees before lending.
3. Regular lending institutions have fixed office locations and contact information. Therefore, after you choose a loan institution, you'd better go to the loan company to make an inspection in person and get to know the situation before applying for a loan.
Second, informal loan companies.
1. Generally, only the mobile phone number and contact person are provided, and there is no fixed telephone number and office address;
2. Generally speaking, the company has branches in large and medium-sized cities all over the country, and it is convenient for all localities to handle business;
The loan terms are very loose and the procedures are simple. You only need to provide basic information, and you don't need a mortgage.
4. The interest rate is so low that the monthly interest rate is only 1%-3%.
5. When the borrower contacts, the liar will find various reasons to ask for the upfront expenses (such as prepaid interest). );
Extended data:
Interim provisions on the administration of loan companies
Article 7
The name of a loan company consists of administrative divisions, shop names, industries and organizational forms in turn, in which administrative divisions refer to the names or place names of county-level administrative divisions.
Article 8
The establishment of a loan company shall meet the following conditions:
(1) Having articles of association that meet the requirements;
(2) The registered capital is not less than RMB 500,000.00 Yuan, which is paid-in monetary capital, and shall be fully paid by the investor at one time;
(3) Having senior managers with professional knowledge and professional work experience;
(4) Having staff with corresponding professional knowledge and work experience;
(5) Having the necessary organizational structure and management system;
(6) Having business premises, safety precautions and other business-related facilities that meet the requirements;
(7) Other conditions stipulated by China Banking Regulatory Commission.
Article 9
To establish a loan company, its investors shall meet the following conditions:
(1) The investor is a domestic commercial bank or a rural cooperative bank;
(2) Its assets are not less than 5 billion yuan;
(3) Good corporate governance and sound and effective internal control;
(four) the main prudential supervision indicators meet the regulatory requirements;
References:
Baidu Encyclopedia: Interim Provisions on the Administration of Loan Companies