Characteristics of cash loans

Cash loan, the abbreviation of petty cash loan business, is a consumer loan business for applicants, which has the characteristics of convenient and flexible loan repayment method, real-time approval and quick arrival.

The main characteristics of cash loan are: small amount, short period, no mortgage, fast process and high interest rate.

Starting from 20 15, cash loans, as an important branch of consumer finance, began to rise strongly in China. First-and second-tier cities are mainly online, while third-and fourth-tier cities are mainly offline.

As of 20 18 and1June, the financing channels of the cash lending platform have been completely banned, and besides banks and ABS products, the financing channels in the capital market are also tightening.

Extended data:

According to the Notice on Standardizing and Rectifying Cash Loan Business:

III. Intensify efforts to further standardize the participation of banking financial institutions in "cash loans" business.

(1) Banking financial institutions (including banks, trust companies, consumer finance companies, etc. ) We should strictly follow the Interim Measures for the Administration of Personal Loans and other relevant regulatory and risk management requirements, and standardize the loan issuance activities.

(2) Banking financial institutions shall not provide funds for lending to institutions without lending business qualifications in any form, and shall not contribute to lending to institutions without lending business qualifications.

(3) Where a banking financial institution cooperates with a third-party institution to carry out loan business, it shall not outsource core business such as credit review and risk control. The "loan assistance" business should return to its original source. Banking financial institutions shall not accept credit enhancement services provided by third-party institutions with unsecured qualifications and other disguised credit enhancement services. They should ask and ensure that third-party cooperative institutions do not charge interest fees to borrowers.

(4) Banking financial institutions and their asset management products issued and managed shall not directly invest in (class) securitization products or other products sold on the basis of "cash loans", "campus loans" and "down payment loans". Banking financial institutions to participate in the standardization and rectification of "cash loans" business, by the CBRC local agencies responsible for the local rectification office to cooperate.

Fourth, continue to promote and improve the business management of P2P information intermediaries in P2P lending.

(a) shall not arrange or arrange in disguised form the loan business that does not meet the relevant interest rate provisions of the law; It is forbidden to deduct interest, handling fee, management fee and deposit from the loan principal in advance and set high overdue interest, late payment fee and penalty interest.

(2) It is forbidden to outsource core work such as customer information collection, screening, credit evaluation and account opening.

(3) Do not match the funds of banking financial institutions to participate in P2P peer-to-peer lending.

(four) shall not provide loan matching business for students and borrowers who have no repayment source or repayment ability. It is not allowed to provide housing financing and loan matching services such as "down payment loan" and real estate fund-raising in different places. Do not provide loan matching business without specific purpose.

The joint work office of special risk remediation of peer-to-peer lending shall clean up and rectify the cash loan business of information intermediaries in peer-to-peer lending in accordance with the requirements of the Notice on Cleaning up and Rectifying Cash Loan Business Activities (17).

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