In recent years, micro-credit, as a form of microcredit, has attracted increasing attention to its interest. Micro-credit refers to borrowers applying for loans in their own areas of operation for small capitalization, with a general loan line of tens of thousands of yuan. So what's the interest on the micro-credit

What's the interest on micro-credit

First, it needs to be made clear that the interest on micro-credit is determined by the lending institutions themselves, without a uniform standard. Of course, in general, interest is not too high and is closer to bank interest rates. However, in the selection of lending institutions, some detail needs to be noted。

Second, the high and low interest on micro-credit is also related to the personal credit position of the borrower. Like banks, if you have a better credit record, then lending institutions will naturally give you a more favourable interest rate. And if you have a bad credit record, then you may need to cover higher loan rates。

In addition, interest on micro-credit relates to the duration of the loan. In general, interest would be relatively cheap if the duration of the loan was short. As lending institutions are able to obtain principal and interest returns more quickly. If the duration of the loan is longer, then the lending institution will need to invest long-term to sustain it and take greater risks, so that interest will increase accordingly。

Finally, the high and low interest rates on micro-credit are also related to the lending institutions ' own performance. Smaller lending institutions, because of their own weak risk management capacity and financial capacity, often need to increase their rates of return by increasing interest rates. As in the case of some large financial institutions, their operations are relatively stable and interest rates can be reduced appropriately to increase market share。