Small-loan companies grow against the overall trend in Jiangsu Province

According to the statistical report on small-loan companies for the first half of 2021 released by the People’s Bank of China, by the end of June 2021, there have been 6,686 small-loan companies in China, with 66,931 employees, and the loan balance has been RMB 886.505 billion, increasing by RMB 25 million in the first half of the year. Compared with the beginning of the year, the numbers of both small-loan companies and their employees declined.

In terms of provinces, Jiangsu had 566 small-loan companies, ranking first in the country; 4,721 employees, ranking second in the country; paid-in capital of RMB 68.152 billion, ranking third in the country; and loan balance of RMB 76.689 billion, ranking second in the country.

The number of small-loan companies in Jiangsu made an increase instead of a decrease, up by four companies compared with the beginning of the year. This year, Jiangsu Local Financial Supervision and Administration approved applications of more than ten small-loan companies for establishment in Yancheng, Liyang, Lianyungang, Lishui, Haimen, Rugao and other places, with individual registered capital ranging from RMB 20 million to RMB 150 million.

Prudence is a major development feature of Jiangsu’s small-loan industry. “There are only three types of small-loan companies in Jiangsu, namely, agricultural small loans, science small loans and Internet small loans. Each type was set up on a pilot basis, with strict restrictions on the orientation of loans and the scope of business, emphasizing serving the real economy,” as an industry insider pointed out. Data show that at present, Jiangsu’s small-loan companies have more than 80% of the balance of loans related to science and agriculture, and have issued RMB 1.4 trillion of loans cumulatively, serving 178,000 clients in fields concerning agriculture, rural areas and farmers as well as small and micro enterprises.

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