CreditEase, a Beijing-based financial services firm, has launched an online referral engine in China aimed at connecting investors and the public with borrowers that include graduate students and rural women through partnerships with merchants, microfinance institutions (MFIs) and universities. The company’s microfinance operations are detailed at http://www.yinongdai.com/. While other lending services are handled via http://www.creditease.cn/.
CreditEase manages the credit relationship between investors and borrowers and diversifies investors’ loans amongst many borrowers to mitigate risk. According to Tang Ning of CreditEase, lenders can expect an annual rate of return of 2 percent for loans to farmers and as much as 10 percent for loans to students. Lenders can provide loans as small as CNY 100 (USD 15). CreditEase reduces default risk through credit checks, investment fund diversification and a separate risk fund that covers losses when debtors pay late or default.
A Chinese e-Business Research Center report estimates internet loans disbursed in China during 2010 to have totaled approximately CNY 13 billion (USD 1.96 billion) [1,2,3].
By John Howard-Smith, Research Associate
About CreditEase: CreditEase, headquartered in Beijing, China, is a lending, consulting and professional services firm. With social responsibility in mind, CreditEase offers credit counseling and assessment, credit program development, protocol management, cash management and credit management services. Financial data for the company is not available.
[1] China.org.cn: “Here Comes the Loan Arranger”, http://www.china.org.cn/business/2010-12/29/content_21636953.htm
[2] PlaNet Finance: “The First ‘China Microfinance Innovation Forum’ Held in Hangzhou”, http://planetfinancechina.org/news/first-china-microfinance-innovation-forum-held-hangzhou
[3] CreditEase, http://english.creditease.cn/
MicroCapital’s Microfinance Universe profile: CreditEase, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CreditEase
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Temenos Launches Artificial Intelligence Platform for Mortgage Lenders
- SPECIAL REPORT: The Business Case for Education Finance #EMW2023
- MICROFINANCE PAPER WRAP-UP: “State of the Art of Green Inclusive Finance 2011-2019: Worldwide Status and Progress Over 10 Years,” by e-MFP Green Inclusive and Climate Smart Finance Action Group
- SPECIAL REPORT: Leveraging Carbon Credits to Insure MSMEs in Climate-vulnerable Nations #SAM2023
- MICROCAPITAL BRIEF: ADB Issues $8.5m Bond to Fund On-lending to Women, Agricultural MSMEs in Azerbaijan
