Guarantee Corporation, the pawn line, the petty loan company's difference

Guarantee Corporation is an important part of folk financing. However, from a certain angle, the Guarantee Corporation will be greater than the pawn business risk. Guarantee corporation are not direct loans to small and medium-sized enterprises, but act as a go between, say, some enterprises have no fixed assets corresponding to the bank as collateral, then you need to help them do the Guarantee Corporation to guarantee bank loans. Although the government currently supports microfinance, but does not guarantee the principal, so the Guarantee Corporation is still a great risk.

Pawn, refers to households when their movable, property rights as a pledge or when the real estate as the mortgaged to the pawn line, delivery fee, made when payment, and in the agreed period when the interest payment, reimbursement when gold, when the act of redemption. Pawn, pawn refers to the specialized in the activities of the enterprise legal person established in accordance with the present measures. And may obtain loans from commercial banks, but not for business investment.

According to the provisions of the law of pawning, monthly interest (pawn industry called the "general expenses") can not be more than 4.2%, that is to say, when 100000 yuan of goods, a month of "cost" of up to more than 4200 yuan. 　

In addition, the biggest problem lies in the pawn industry faced policy bottlenecks. Reportedly, the national development of the pawn industry to be more cautious. Every year the government will be controlled by limiting the number of new licensing mode of pawning.

For small loan companies, Chinese Banking Regulatory Commission People's Bank in May 4, 2008 Chinese hair (2008) to the No. 23 document issued "about microfinance company pilot guidance" aims to comprehensively implement the Scientific Outlook on Development, effective allocation of financial resources, and guide the flow of capital in rural and underdeveloped areas, improve financial services in rural areas, agriculture, farmers and rural economic development, support the construction of new socialist countryside, put forward the guiding suggestions. The petty loan company can direct loan, Guarantee corporation can't direct lending, can be commissioned loan will lend to enterprises. Pawn shops can also directly will lend to enterprises.