An Inclusive Study Of Payday Loans In China

At present,the structure of domestic credit market is imperfect and the contradiction between supply and demand is prominent.The actual number of credit card users is less than 200 million.The development of inclusive finance is insufficient,and the disadvantaged groups are still severely excluded by the financial system.Vulnerable groups limited by credit usually rely on private lending to meet their financial needs.The emergence of payday loan provides a new option for this group,enabling borrowers to meet their financial needs more conveniently.At the same time,the high interest rate of payday loan,the long-term loan trap,the temptation of loans and other problems have brought negative effects to the borrower.After regulators imposed strict restrictions on online micro-finance,payday loan products were gradually withdrawn from the market because they could not meet the requirement of annualized interest rates.However,the loan demand of borrowers did not disappear with the withdrawal of payday loan institutions.In order to meet the loan demand,some borrowers sought funds from underground micro-loan platforms,thus causing greater welfare losses.This paper conducted a questionnaire survey on payday loan borrowers,collected 29,417 valid records,and launched an in-depth,continuous years of borrowing research on 160 payday loan users.The conclusions are as follows :(1)the overall satisfaction of payday loan borrowers is low;(2)after payday loans were withdrawn from the market,a high proportion of borrowers can only borrow from underground lending platforms with higher costs.Based on the above research results,this paper puts forward some suggestions to improve the structure of domestic credit market.First,before the development of inclusive finance,detailed regulations should be adopted to remove the underground lending platforms from the lending market.The lending should be exposed to the sun with the help of payday loan.Secondly,it is proposed to establish relevant database,increase various related researches,and promote the development of credit market.Finally,it proposes to strengthen education for vulnerable groups and listen to their voices more,provide better service and promote their welfare.