The first SRO’s regulation on “College Lending”

A few days ago, an article on Bloomberg discussed a grey area in China’s FinTech: P2P lending to college students to allow them to buy things on credits. The concerning part is the loan charges an interest rate way higher than traditional banks. After the practice of asking female college students to hold their IDs in nudity to borrow money online was publicized in June, Shenzhen Internet Finance Association, a SRO, becomes the first SRO in China that issued regulations on “college lending.” (This distinguishes from the regulations announced by Chongqing government in August. )

The regulation includes 9 aspects:

  1. risk alert
  2. information verification
  3. control on cost of borrowing
  4. check the purpose of borrowing
  5. lending cautiously
  6. information security
  7. ban on non-compliant promotion
  8. ban on off-line sales and school marketing
  9. ban on threats for failure to repay


Updates from 8/31/2016

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