What are the restrictions on the business scope of microfinance companies?

Business scope of microfinance companies: Except for microfinance business, microfinance companies are not allowed to engage in other business activities, invest abroad or set up branches.

Small loan companies shall not engage in any form of absorbing public deposits and fund-raising activities.

Small loan companies choose their own loan targets under the principle of serving farmers, agriculture and rural economic development. Microfinance companies should provide credit services to farmers and micro-enterprises, and strive to expand the number of customers and service coverage.

Small loan companies should adhere to the principle of "small amount and dispersion" in issuing loans. The loan balance of a microfinance company to the same borrower shall not exceed 5% of the net capital of the microfinance company, and the credit balance of a single group enterprise customer shall not exceed 15% of the net capital.