Small Credit Loan Case Example

Microcredit loan companies have upgraded their brands one after another, and may develop better in the future

Last week, Qiancheng Technology, a start-up company in the field of microcredit loans, announced a brand upgrade. The business platform has shifted to a multi-business combination targeting the B-side and C-side. Previously, companies such as Yongqianbao and Zhangzhong Finance also announced brand and business upgrades. And also recently, Hongling Venture Capital, a long-established online lending platform featuring a large-scale bid model, announced that it will liquidate its online lending business within three years and will transform into an investment bank in the future. This means that Hongling Venture Capital will withdraw from the field of mutual funds. The business model of microcredit loans is different from that of online loans. However, the expansion of microcredit loan enterprise business and the withdrawal of Hongling Venture Capital from the mutual finance field are intertwined, which still reflects a reality: Internet financial business, in terms of lending, is "Microfinance technology", large loans and the traditional banking model lack adaptability in the field of mutual finance. Precisely because of the role of financial technology and the services that traditional financial institutions cannot provide, such as "microcredit loans", microcredit loans have developed rapidly in China and have gradually become a very typical mutual financial business. Of course, small credit loans are currently facing many pressures such as market competition, funding, and supervision.

Qiancheng Technology Business Upgrade Last week on July 26, Qiancheng Technology held a press conference in Shanghai to announce business and brand upgrades. Qiancheng Technology’s previous main business platform was “cash card”, which provided small-amount, short-term loan information matching services for young people aged 23-35, with limits ranging from 1,000 to 5,000. In December 2016, Cash Card completed a 100 million yuan Series A financing jointly invested by 51 Credit Card, Hemeng Venture Capital, and Fancheng Assets. In April this year, it completed Series B financing invested by Tiantu Capital and 51 Credit Card. As of now, Qiancheng Technology has more than 10 million registered users, more than one million loan users, and the highest single-day matching volume exceeds 80,000 orders. This business upgrade has upgraded from the previous single business platform cash card to a multi-service platform for B-side and C-side. On the C side, it mainly provides small-amount, short-term, consumption-oriented, and turnover-oriented lending information services. Specific products include "Cash Card", "Cash 360", and "Cash I-Tiao" to achieve risk pricing, gradient services, and loan management services. ; On the B-side, it helps provide risk control review and financial technology output services, mainly including three products: "Credit Cloud", "Qiancheng Data" and "Post-Loan Manager". This kind of business upgrade can be understood as: Previously, Qiancheng Technology has accumulated a certain number of customers, data and financial technology level in the field of short-term microfinance. In the next step, based on these business accumulation, it will expand its business horizontally, in addition to the microcredit loan business. , and also provides customers with loan information management services through "Cash 360" to solve users' needs for finding loan products that are more suitable for them and managing their credit. "Cash IOU" is a scenario-based loan, and currently plans to expand scenarios in areas such as games and live streaming rewards. Qiancheng Technology has accumulated tens of millions of users, and the proportion of users currently providing lending services is about 20%. Other unsatisfied customers can be recommended other products. This is the logic behind expanding business on the C side. This kind of business idea is now relatively common in the entire mutual financial industry. Judging from recent cases, Yirendai is building an open platform. When a customer's loan demand exceeds the platform's borrowing limit, it will recommend the customer to its partners and obtain a certain commission. Fangwang, a mortgage loan business platform, cooperates with large-traffic platforms such as JD Finance, Baidu Finance, and Kingdee in acquiring customers. These platforms will recommend customers who need housing mortgage loans. On the B side, the horizontal expansion of business is mainly based on the established big data risk control capabilities and technical output in pre-loan risk control, post-loan collection and other aspects.

Companies such as Yongqianbao and Zhangzhong Finance have also upgraded their brands before. Currently, major companies in the field of small credit loans include Yongqianbao, Zhangzhong Finance, 2345 Loan King, Quantitative School, and Qiancheng Technology wait. Before the Qiancheng Technology brand upgrade, Yongqianbao and Zhangzhong Finance had related actions. On March 28 this year, while announcing the financing, Yongqianbao announced that its brand had been upgraded to Zhilong Group and would provide services from three directions in the future: First, Yongqianbao’s mobile APP will next provide “Thousands of People, Thousands of Faces” products, providing different amounts and installments; second, create a risk control system with artificial intelligence technology as the core - I.C.E., which uses artificial intelligence to price people's risks, not only for its own products, but also for external output risk control technology.

Third, by building a credit process management platform "Huicheng Bangbang" based on big data and artificial intelligence automation technology, we can independently provide full-process services in the credit process. At the beginning of April, Zhangzhong Finance also announced the upgrade of its brand strategy, from "Zhangzhong Finance" to "Zhangzhong Financial Services", extending from the past single online lending to more fields, exporting risk control capabilities, and will cooperate with banks and consumer finance The company has reached cooperation with Internet small loans, etc. to provide more diversified loan types. Judging from the actions of several companies, they are generally exploring some new businesses outside of small credit loans. Among them, technology output is a common direction, providing solutions to traditional financial institutions in aspects such as big data risk control. In addition, there is the matching of credit products. Of course, each business is still in the exploratory stage, and it is still far from forming a certain business volume and contributing to performance.

Why do they all favor brand and business upgrades? Most of the top microcredit loan companies are upgrading their brands and adding business lines. The business logic mainly lies in: On the one hand, this is the accumulation of users, data, and technology to a certain extent. The inevitable choice of stage. When users accumulate to a certain level, they need multi-dimensional financial services to keep users on the platform. As their income level increases, users will need higher amounts of financial services. If no suitable products are recommended to customers, they will face the problem of losing the customer resources they have accumulated through hard work. Doing various explorations in business has become an inevitable choice. In addition, data resources and technologies have been accumulated to a certain extent, and the marginal cost of use is very low. The external export of technology will not only generate a certain amount of income, but also enable partners to have the technical capabilities to serve the general public. On the other hand, there is the need to enhance business stability, enhance valuation and strengthen brand building. Although the single small credit loan business currently has high profit margins, it faces regulatory pressure on interest rates, service fees, etc., as well as market risks such as fraud. In the future, the industry will return to a reasonable level. In addition to this business, exploring some related businesses based on the established business foundation can increase revenue sources, enhance business stability, and is also good for valuation. In addition, some chaos in the industry, such as high interest rates, high bad debts, etc., as well as a large number of media reports, have made the entire industry questionable. Brand upgrade also protects the corporate image.

The destiny of Internet finance is to combine microfinance with financial technology. Microfinance is a mutual finance business that has emerged in the past two years and has now become an important segment of mutual finance. The characteristic is that it uses big data and other technologies to serve people who cannot be served by traditional finance. There are certain doubts in the market surrounding this industry, such as whether interest rates are too high, whether it is reasonable for low-income groups to increase debt ratios, violent debt collection, etc. However, it is undeniable that the industry is still experiencing a boom period, and several major platforms are still Expand business horizontally. The development of small credit loans mainly follows the basic rules of mutual finance, which is to use emerging technologies to do business that traditional finance cannot do, such as credit services for customer groups who lack credit records. This is the advantage of Internet finance. It is difficult to get around by not betting on financial technology, but doing bank-like corporate business through traditional models through the Internet platform. Hongling Venture Capital is an obvious example. Over the years since its establishment, it has become famous in the industry for its large-bid model, which moves corporate loan needs online to solve the problem. The scale of transactions is indeed large, and the team is mainly composed of senior executives from banks. However, the projects that can be grabbed are often projects that banks are unwilling to lend to, and the quality is average. As a result, Hongling Venture Capital has stepped on a lot of mistakes, accumulated a certain amount of bad debts, and the company is also in a state of loss. At the end of 2016, Zhou Shiping, chairman of Hongling Venture Capital, said that with the introduction of online loan supervision measures, the living space of online loans has been restricted by quotas. In the future, it will focus on financial technologies such as intelligent investment advisory, financial IT, and financial big data. Solutions etc. However, transformation is definitely difficult, and Hongling does lack accumulation in this area. From this perspective, microfinance technology is the standard for Internet finance. In the field of large-scale corporate credit, Internet finance has not yet found suitable technologies to improve risk control efficiency and capabilities. After all, an enterprise is an organization and does not have the same capabilities as individuals. Rich behavioral data makes it difficult for current big data risk control technology to be put to use. This makes mutual funds have no advantage at all compared with banks. The use of big data and other technologies to provide microfinance for individual users is the destiny of current Internet finance.

The microcredit loan industry may undergo adjustments in the future under the influence of factors such as funding, market competition, and supervision. Of course, the microcredit loan industry itself also has some problems.

From the perspective of industry order, the industry is currently a mixed bag. The improper behavior of some companies has damaged the image of the industry and also caused the industry to face greater regulatory pressure. The entire industry needs to establish healthier and more sustainable business models. From the perspective of funding sources, funds for small credit loans often come from banks, licensed consumer finance companies, ABS, etc. They do not raise funds from the public, which will not increase social risks. However, funds rely on licensed financial institutions, and in terms of market funds, In stressful situations, there may be difficulties in lending, which may affect the development of business. Previously, media reported that the cash loan product "Feidai" failed to borrow money, suggesting that the reason was the tightening of credit policies of cooperative banks. The capital side is controlled by others. It is not a problem when the market liquidity is good, but it may become a big problem when the liquidity is poor. Of course, whether you can obtain funds from financial institutions is also related to your own risk control capabilities. If your risk control capabilities are recognized by financial institutions, funds can be guaranteed to a certain extent. Judging from the regulatory situation, in the future, regulators may put forward strict regulatory requirements on interest rates and service fee levels, collection methods, collection methods, data privacy protection, etc., which will have a greater impact on the industry, especially if interest rates and service fees are Limiting the level may affect the profit model of many platforms. From the perspective of market development, in theory, the potential customer base of microcredit loans, that is, people who have not been served by banks, may reach hundreds of millions. However, the people served by microcredit loans are concentrated around the age of 22-35, which cannot Lending to minors and students, the demand for older age groups may be smaller, so the number of people that can be served will be limited. There are a large number of small credit loans on the market, and the cost of acquiring customers will be higher and higher in the future. Taken together, it is expected that some inferior platforms will gradually withdraw from the market under market and regulatory pressure. However, the industry will not be overly concentrated. The loan market has always been dominated by several service providers. It is expected that the same will be true for micro-credit loan services. There may be a dozen or more larger-scale service providers at the top of the industry. After all, companies that are at the forefront of the industry often have little gap in terms of capital, user scale, technical capabilities, etc. The service differences between different service providers are not big, and it is difficult to replace each other. For users, in The cost of switching between these service providers is not high. It is difficult for the market to form a situation in which a few companies dominate.

What are the good deals in 2021? Do these well to get a high pass rate!

It is getting easier and easier to borrow money online now. Many pure credit loans do not require mortgage guarantees and you can borrow money with credit. However, each platform has different risk control mechanisms and thresholds, and the loan limit is also different. Will affect the pass rate. Many friends who are in urgent need of money will ask what are the best deals in 2021? Today I will give you an inventory.

What are the good deals in 2021?

Nowadays, there are many platforms with low barriers to entry, but there are two things to do before taking out a loan. One is to find a formal platform to borrow money, such as banks and licensed consumer financial institutions. A good choice; one is to be clear about the platform requirements for a loan. Only those who meet the conditions have a chance to get a successful loan.

I really don’t know which platform is better. You can refer to these. Many users have reported that it is easier to borrow money. There are no tricks, no random charges, and the interest is acceptable.

1. Flash loan: China Merchants Bank’s small credit loan has a maximum limit of 300,000, but most of them are only tens of thousands. You can apply directly at CMB’s mobile banking. If you use CMB’s credit card well, you will have low debt. If you don’t have bad credit, you can try it.

2. CITIC New Express: CITIC Credit Card special quota installment business, with a maximum limit of 300,000. It is no problem to borrow more than 50,000 with good qualifications. The premise is that the credit card is in good condition and has not been risk controlled. And the credit debt ratio does not exceed 50%, which is easier than applying for a bank loan directly.

3. Ping An Orange Blossom: Credit loans under Ping An Puhui can cover all consumption scenarios. The application conditions are relatively simple. It is best to have a college degree or above between 22 and 45 years old, with a stable job and income. The maximum limit is 200,000, and those with good credit can borrow more than 10,000. It is one of the best platforms for placing loans.

4. Doudouqian: A product of a licensed consumer financial institution. It mainly provides small credit loan services for office workers aged 20 to 50 years old with good credit and stable income. The maximum limit is 50,000. You need to upload a valid ID card and bind your bank card. The system will automatically approve the loan. The better the qualifications, the easier it is to borrow money.

The above is the relevant introduction of "good deals in 2021", I hope it will be helpful to everyone.

After the foreign money jar loan has been approved, can I borrow money if there is a limit?

Yes

1. Background of the employer

What is the foreign money jar loan? The personal small credit loan products of Beijing Lingyue Information Technology Co., Ltd. have formal financial licenses. The investors mainly cooperate with banking institutions and licensed consumer financial institutions to lend money, and have now transformed into compliant loan assistance products, so it is said that Yangqiang is a very formal and reliable platform.

2. Number of loan periods

Currently, Yangqiang can provide credit card users with a loan limit of 30,000 yuan and above. The period of use is generally 6-12 periods, and the loan limit can be used repeatedly. Return immediately.

3. Interest rate

At present, the daily interest rate of money jars is generally around 0.5%, and the specific daily interest rate is subject to actual approval. A real case example is to borrow 2,000 yuan in 12 installments, with an interest of 410.86 yuan. The daily interest rate is around 0.057%, which is in line with the interest rate standards stipulated by the state. This interest rate is considered medium among current online loan platforms.

4. Credit reporting

Currently, the foreign currency jar loan is connected to the central bank’s credit reporting system, and Hua Xia Bank has also launched fund depository. Generally, online loans deposited through banks will be subject to the credit reporting system. You must be trustworthy, and the licensed financial institutions and banking institutions that match the loan from the Yangqiancan will definitely be credit-checked. The funds are kept in separate accounts, and the borrowed funds are safer, so borrowing from the Yangqiancan is still very reliable.

Personal non-repayment case

Loans must be repaid, and non-repayment is not allowed.

What are the consequences of not being able to repay the loan:

If you really do not have the ability to repay, you should negotiate with the lending institution to extend the repayment period or repay in installments;

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If the lending institution fails to fulfill the judgment within the performance period after winning the case, it will apply for compulsory execution;

When accepting compulsory execution, it will inquire about the properties, vehicles, securities and securities under the name of the lender in accordance with the law. Deposits;

If the lender has no property available for execution and refuses to fulfill the effective judgment, negative information such as overdue repayment will be recorded in the personal credit report and high consumption and entry and exit will be restricted. There is even a possibility of judicial detention.

Basically there will be no impact, just repay on time in the future.

The “trap” of consumer credit loan interest rates that you don’t know

“Most people have the least money when they are young, but they need to spend the most money when they are young. time, if you don’t support it, you won’t be able to consume when you can consume it most.” - Economist Chen Zhiwu.

At the same time, consumption is also the best way to consume excess production capacity. The "deleveraging" in the past two years was to reduce the macro leverage ratio and cut off the flow of funds to real estate, but it does not mean to suppress consumer finance. Compared with macro liabilities, consumer finance actually accounts for a very low proportion.

The current Chinese economy has shifted from relying more on investment and exports to relying more on consumption. Therefore, it is necessary to develop consumer finance. Small credit loans of various banks are booming, and it has entered the stage of "universal consumption". " era.

Considering that many people are eager for credit loans, they do not study the true interest rate of the product, or the bank uses misleading text to make consumers think that the interest rate is very low, and blindly apply, causing great losses. and sequelae, I use this article to popularize the "trap" of credit loan interest rates.

How do bank credit loan products describe their interest rates? Usually, the interest rate is not written directly. There are various ways to calculate interest. According to statistics, there are the following expressions:

Annual rate , Monthly rate is X%, interest-free and only handling fee is charged. . .

Trap 1: The round-to-zero method only displays the daily interest rate or monthly interest rate, which seems to be a good deal if the number is small.

For example, "borrow 10,000 yuan and only repay 5 yuan per day." Interest is calculated daily, and you can repay as you borrow, which means the daily interest is 0.5%, the monthly interest rate is 1.5%, and the annualized interest rate is 18% (early repayment is not taken into account). This is the interest rate for credit card cash withdrawals, use it with caution. Usually banks cannot reach such a high rate, but the credit interest rates of institutions are so high, and online loans (cash loans) are even higher than this.

Trap 2: Installment consumption only shows the interest or fees paid in each installment, which is also broken down into zeros.

Suppose someone buys furniture worth 12,000 yuan in installments with a credit card, divided into 12 installments, with a monthly rate of 0.5%.

At first glance, 0.5%X12=6%, the interest rate is not high.

However, the repayment method of consumption installment is "equal principal and equal interest", which means that the principal is repaid every month, and the principal for which the interest can be calculated in the next month = the initial principal, even if In the last month, the principal is almost paid off, and the interest in the last month is still "initial principal x rate".

In layman’s terms, the principal is repaid less and less, but if the interest remains unchanged, the interest rate will be higher and higher

What is the formula for calculating the real interest rate?

The internal rate of return IRR is the correct formula for calculating the real interest rate

It can be calculated using the IRR formula in EXCEL, WPS and other software. In this example, the annualized IRR is far more than 0.512=6%, IRR=10.9%!

This is a relatively common credit card installment SMS. The handling fee of 75 yuan per installment is actually the installment interest, but the term interest does not sound good, so I changed the name.

The interest rate for this installment seems to be (7512)/10000=9%.

But this 10,000 yuan does not take up a year, only the last installment is returned The 833.33 yuan has occupied bank funds for a full year.

The actual interest rate charged by the bank should refer to the internal rate of return.

How much is it?

16.6%. It's still relatively high.

Banks are not philanthropists. No matter which bank you choose, credit card installment interest rates are not low for borrowers. Otherwise, how would the bank make money?

But if you want to make money, you can’t just grab it openly, so you can set an installment standard that seems to have a low interest rate and is affordable to the borrower.

Trap 3: When the loan is issued, an interest is charged first, commonly known as "head interest"

The principal is 100,000 yuan, which is repaid in 12 installments, with a monthly payment of 0.5 % interest, but first collect all the interest and repay the principal.

The superficial interest rate is 6%, and the actual interest rate is 11.94%

The People's Bank of China has regulations that the interest, handling fees, management fees, and security deposits deducted from the loan principal are collectively referred to as " "Beheading interest" are all illegal products, so don't sign up!

The "cut-off interest" of several banks is not deducted from the principal, but the interest is collected in advance in one lump sum. However, it still does not comply with the regulations, and they have all been rectified during this period.

Final summary:

Learning the correct interest rate calculation formula is only one aspect of avoiding "traps". More importantly, don’t invest rashly, find high-interest investment products, and think you can use low-interest funds to make arbitrage.

For normal consumption, a bank’s 300,000 limit is already enough. In real cases, quite a few people knew that the interest rates were relatively high, but faced the "trap" but couldn't help but jump into it. "Concurrently" borrowed millions from multiple banks and then invested them all at once. In their "calculations", the short-term nature of credit loans is ignored. As long as there is a high return within the period, it is worth taking the risk.

However, the historical process is not on their side. In the past three years, most of those who used concurrent credit loans to invest in real estate have suffered losses, or have a surplus in their books, but cannot sell out the compensation. Credit hole.

Even if you are lucky enough to make positive profits, this extreme investment method is not advisable. Even if wrong habits win for a while, they will form wrong thinking patterns and eventually bring huge losses.

In recent cases, it has been found that many people want to use their properties as mortgages to pay off high-value credit loans. Some people can succeed, but some people even have high debts on their properties and are forced to sell them. The dilemma of being the only one to live in.

China’s economy can no longer grow as fast as it has in the past thirty years or so. We need to change our mindset and use steady investment to cope with the uncertain future. This is the concept that I have always adhered to, and it is also where our value lies.

Has anyone counted how many people have been cheated by microcredit loans?

There are no specific statistics on how many people have been killed by small loan scams, but there are indeed many typical cases exposed by the media. Of course, there are also many cases that occur secretly that the media cannot expose.

This is also one of the most important reasons why the China Banking Regulatory Commission wants to regulate and rectify the small loan industry, because it not only disrupts the country's financial order, but also jeopardizes social stability.