What does it mean to close the installment repayment channel for microfinance?

I would like to ask what it means to close the installment repayment channel for microfinance. That is to say, you can't use small loans.

There are several reasons for this:

The borrower has overdue behavior. If users have bad behaviors such as overdue in the process of using micro-loans, then in order to ensure the safety of funds and avoid the increase of bad debt rate, micro-loans may close the user's loan entrance. However, if the user can repay the loan in time and make more use of other functions of WeChat to improve the payment score of WeChat, it is still possible to reopen the micro-loan.

Secondly, debt ratio is too high. Many users' micro-loans have never been overdue, but the loan channel is still closed. This is because this kind of users applied for loans in places other than micro-loans, resulting in multiple credit lines on personal credit information, which was considered by the system to be too high in personal debt ratio and became a serious high-risk user. In order to avoid the loan risk, the system may also close the user's loan channel.

There is also the frequent prepayment. Although many products clearly express their support for prepayment, it is only a disguised breach of contract. After all, in this way, lending institutions can't earn fees from it, so it is better to give the quota to those who need it more. The same is true of micro-loan system, and frequent prepayment when using micro-loan is easy to be routine.

Finally, the account activity is insufficient. Now Alipay and WeChat are robbing users, and the competition is fierce. Therefore, if users often use Alipay, the low usage rate of WeChat may also lead to the closure of micro-loans. Therefore, it is necessary to increase business contact with WeChat, improve account activity, and try to participate in grabbing red envelopes, issuing red envelopes, purchasing investment and wealth management products, and returning credit cards, so as to hopefully reopen and increase the quota.