Source | Laser Finance
On August 20, He Xiaorong, deputy ministerial full-time member of the Supreme Law Judicial Committee, stated at a press conference that “adjust the upper limit of judicial protection of private lending interest rates and promote the adaptation of private lending interest rates to the level of economic and social development”. The published LPR (one-year loan market quote interest rate) is 4 times the standard of 3.85%, and the upper limit of judicial protection for the private lending interest rate is set at 15.4% , which is a significant drop from the previous 24% and 36%.
This figure is close to the prediction of experts in media reports. Reports show that around the Spring Festival this year, the Supreme Law is preparing to revise the judicial interpretation of private lending. The mainstream opinion is to set a private lending interest rate protection ceiling. Experts recommend referring to four times the previous one-year interest rate. Now you can refer to the central bank’s LPR quote Four times , about 16%.
The reduction of the upper limit of judicial protection of loan interest rates by 15.4% will undoubtedly affect the red line of consumer credit loan interest rates in the consumer finance industry and further reduce the profit margin of consumer finance companies. In this context, a new round of reshuffle of the industry is approaching. Those consumer finance companies that are licensed institutions or rely on giants can highlight the advantages of the regular army and reap the fruits of victory by virtue of their rich accumulation in scenarios, users, and technology.
On the contrary, some are reduced to capital output channels, facing high cost, difficult to acquire customers, weak risk control, and the consumption of cash loan business under the name of "finan technology", "big data risk control", and "toB service" . Gold companies will face in-depth challenges in compliance operations.