A Study On Operating Legal Problems Of Microcredit Companies

The Microcredit Companies is a special agency who focuses on affording microcredit. It is a kind of corporate organized by commercial models, and its aim is to get profit. Its appearance has special background. The reason the Microcredit Companies get more and more attention is that it find a new financial profit model by effective commercial design, and it provides financial support for farmers and micro-enterprises. Besides, it makes itself could develop sustainably. At the same time, it provides a new way for the private capital. The birth and development of the Microcredit Companies not only mean a kind of innovation in forms of the organization, but also mean a kind of evolution in the financial system. But the innovation challenges the existing financial law system seriously. Theoretically, microfinance companies are doing financial business, however, they have not permit in practice. They have not legal status given by Financial Laws. The fuzzy status makes its right of operational autonomy could not be approved by the law, and it makes the regulation disordered. Under the policy, the Microcredit Companies could own higher loan rates, but it conflicts with the existing laws. The identified operational autonomy guarantees the microfinance company's survival and development; the choose of regulate subjects is necessary premise for the microfinance company to operate orderly; higher loan rates is profit guarantee for the microfinance company to develop sustainably. Such main problems which should be identified get contradictory answers in practice. So, we face the paradox:on the one hand, their action is legal, but on the other hand, they have not the right to take this kind of action. Thus, it is necessary to clear these contradictory rules from the legal view, and make some suggestions to improve them to reconstruct the legal system for the microfinance company.