The income of small loan companies, that is, the cost of loans, is mainly reflected in the interest rate level, and service fees and the like can be ignored. The legal basis is Article 40 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises: The state encourages all kinds of social intermediary agencies to provide information consultation, investment and financing, loan guarantee, legal consultation and other services for small and medium-sized enterprises. The agency fee is a legal fee, and the law supports it as long as it does not exceed the standard. The maximum interest rate of private lending shall not exceed 4 times the market quotation of one-year loan when the contract is established. It is illegal to exceed. According to the laws of our country, the people's court should support the lender's request that the borrower pay interest at the interest rate agreed in the contract, except that the interest rate agreed by both parties exceeds four times the market quotation of one-year loan at the time of the establishment of the contract.
Legal basis: Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases. The loan amount specified in debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the people's court shall confirm the actual amount lent as the principal.