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People rely on money lenders profit remaining risks

A37 Web one newspaper yesterday published the Bank: lending legal, but of limited interest rate after a reader to inquire how to distinguish "usury" and "borrowing"? Individuals with money to get high yields can participate in private lending? Involvement of private lending risk how to control? Reporter calls for multiple investigations.

this edition written by   Chen Chunlin Xue Bei

in accordance with the provisions of the Central Bank, private banks lending rates should not exceed 4 times times the benchmark interest rate in the same period, and beyond, will not be protected by law. This reporter has learned, most lending were months interest, up to a year. Banks ' benchmark one-year lending rate now stands at 6.56%, Bank lending rates are now based on the benchmark interest rate floating 20%-30%, less 10%. If a greater risk, interest rates rise more. In accordance with the provisions of the Central Bank, private borrowing rates should be capped at 26.24%, is converted into monthly 2.18% (2.18), that is, when more than the monthly borrowing rate 2.18 points, even if "usury"  , are not within the scope of legal protection.

companies: ranging from monthly investment company 1%-10%

Ms Chan working for an investment company in Nanjing. She told reporters that the company is mainly engaged in lending. "Our company is now in Nanjing," Chen said, "the drum tower, Zhongshan West Road, near green square there are several. Our companies usually do business a profitable investment, in recent years in order to get a higher return on investment in the lending business, so the company must be at least hundreds of millions of investment, more funds of funds. " , She said," to loans to small and medium enterprises in the province are mostly large enterprises are relatively affluent. From the perspective of industry, manufacturing or other industries. "Monthly 4%-5% in General, the lower one or two points there, higher close to 10%. Depends on the specific situation.

"we are think, civil borrowing industry legalized should is sooner or later of thing," Chen ladies think, himself this industry is for many SMEs, and especially private enterprises service, for they provides needed of funds, and does not involves put private of money took to again take out, "after all fear such of fund-raising not legal", Chen ladies Tan Chen, just into this company Shi, "I of family also worried, think this industry somewhat playing ' Walking ', after the Central Bank's statement issued recently on private lending legal, people around you are talking about, think more conducive to the development of industry compliance. ”

this reporter has learned, private lending, finance companies have attracted some people in traditional finance. Mr Wang used to work in a State-owned bank of Jiangsu, resigned a year ago, jumping to a private investment company, mainly engaged in the loan. Due to some resources and contacts, in one year, personal income, and pay a lot more than the banks, and rapidly became a one million Yuan worth of cars.

personal loans: through relatives and friends about 10%-15% per annum

in Jiangsu, in addition to companies, corporate bodies, private lending interest rates are higher than banks, but mostly by friends, relatives and "middleman" matchmaking. Retired high Lady, took a 10,000 yuan loan in early relatives, lent by relatives of other people, in a year, get 1000 Yuan in interest. This is not high interest rates, Liu is because small companies need money friends and relatives through a promissory note from the friends, lend a sum of money. She said that even friends to borrow, interest at 15%. Liu said that friends face on the one hand, on the other hand feel that although there is risk, but at this point, still higher than investments in other financial products revenue. When a reporter asked how they felt about the borrowing cannot concern? High says, "no problem, are borrowed from relatives, won't take back, as a ' middleman ' relatives on hand but also other relatives money. "However, it is due to such private lending relies on human relationships, so people in the industry believe that the risks cannot be ignored.

Nanjing has over more than 300 private lending institutions, depending on the individual case may be payable semi-annually

according to the earlier-established private lending institutions introduced appropriate company marketing director Li Yuying, currently engaged in private lending institutions in Nanjing about 300, which compared well with dozens of lending rates also vary the normal rate at 20 points (20%). However, insiders told reporters, the so-called private lending "maximum rate" in fact "is not the highest, only more than 10 points higher, twenty or thirty points, due to person". He said he had heard a lending, up to 8 of the monthly (monthly 8%), equivalent to 96% Apr, that means a loan of 1 million Yuan, only one year after interest payments would pay 960,000 yuan. "However, in General, secured and unsecured interest rate is different, lower mortgage interest rates because the loans reduces the risk. "The person added.

Bank one-year savings rate is currently 3.5% and private lending interest rates 10%, 20% or even higher everywhere, so many people think through borrowing to get higher yields, but with mixed private lending institution, when the community is involved in the how to identify the risk?

in this regard, Li Yuying, told reporters that differences between private lending institutions whether formal look at two main points: first, company size, larger companies tend to be more formal, small Forester; second, to see if in loan fees and other service fees. Now many institutions before the lender will charge customers fees or deposits, such a body must be formal, formal institutions only when the lender charge a handling fee.

some industry insiders say, is currently engaged in private lending is a microfinance company in Nanjing, these are formal institutions.

some of them with the nature of supporting small and medium enterprises development, annual interest rate is relatively low, some small and medium banks interest rate level not much, 10%, definitely not more than 15%.

outside there is no reference?

South money finance Professor Wang Yubao told reporters yesterday, our policy has been to allow private micro-credit companies stepped in, it is only in recent years started. Yiqian, complicated approval and high threshold, resulting in some companies do not have relevant qualifications to engage in private lending. Recent bank statement, note the importance of the issue, but whether "usury" complete elimination is not easy. "Usury" the emergence of large loans in the banking system essentially, cannot meet the needs of private capital.

it was his understanding, foreign borrowing is widespread, and the needs of the individual through a formal "intermediaries". "One is the limited financial resources of private microfinance company loans from official financial institutions, lending to private demand, higher interest rates than banks, but not too much higher, few loan sharks, as far as we know, higher than the bank interest rate 4 times, in foreign countries is also high. "Another scenario is that tiny banks can deposit-taking, foreign civil loan. This is equivalent to linking individual supply and demand of funds, and meet the needs of private lending. And currently the micro-financial institutions can only credit you cannot save. In his view, the specification for private lending, credit market structure should also work on and perfect the credit system. Private lending legitimacy have been identified, but how can we let people benefit money through normal lending channels, still remains to be explored.

local risk cases

"high yields with high risk forever." According to industry sources, the Nanjing currently involved in private loan-sharking business, from the end of December this year to March next year, the financing present situation if not effective, is expected to be part of small and medium enterprises to close, which is for people or businesses who are releasing funds, was a "time bomb" If the loan's businesses shut down, citizens or businesses will be devoid of these lending. Industry spread, shortly before a business owner to borrow from his friends in Nanjing had more than 3 million Yuan, 8 of the monthly minutes, but less than a month they disappeared.