Consumer finance companies are "non-bank financial institutions that do not absorb public deposits and provide loans for consumption purposes for individual residents in China on the principle of small amount and dispersion". It mainly provides consumer financing for individual residents, such as purchasing durable consumer goods such as household appliances and electronic products, as well as consumer goods for personal and family travel, wedding, education and decoration. Consumer finance companies have unique advantages such as small single credit line, fast approval speed, no need for mortgage guarantee, flexible service mode and short loan period, which can stimulate residents' consumption and increase effective demand. During the pilot period, mortgage and car loan business will not be handled temporarily. The sponsors of the first three consumer finance companies in China are Bank of China, Bank of Beijing and Bank of Chengdu respectively, and these three companies will take the lead in piloting in Shanghai, Beijing and Chengdu respectively. Among them, the registered capital of BOC Consumer Finance Co., Ltd. piloted in Pudong New Area is RMB 500 million, and China Bank contributed RMB 1 billion, accounting for 565,438+0% of the shares; An Baili Group contributed 1 100 million yuan, accounting for 30%; Lujiazui Financial Development Holding Company contributed 1 billion yuan, accounting for 65,438+09%. The expected annualized interest rate of the loan cannot exceed the scope permitted by laws and regulations; Consumer finance companies have the obligation to keep confidential the personal information of borrowers and may not disclose it to the outside world; The collection of overdue loans should be carried out in a legal way, and improper means such as threats, intimidation and harassment should not be used. It can be said that consumer finance is characterized by a wide range of customers, efficient service and full protection of the legitimate rights and interests of borrowers. Of course, while bringing more profits to the general public, consumer finance companies also have certain limitations objectively because this business is still in the trial stage. In particular, consumer finance companies are not allowed to absorb public deposits, which is greatly limited in business scale and relatively conservative in loan amount. In addition, in terms of expected annualized interest rate, compared with the benchmark expected annualized interest rate implemented by commercial banks, it is still high, which will greatly increase the financial burden of borrowers and require borrowers to seriously think about the economic pressure brought about by debt service. If they borrow blindly, it will have a great influence on their later life.