In 2025, the wave of withdrawal of small loan companies will continue, and many places will cancel pilot qualifications

Blue Whale News, February 27 (Reporter Huang Yujie)Entering 2025, the exit trend of small loan companies continues. According to incomplete statistics, since the beginning of 2025, financial offices in five provinces including Jiangsu, Inner Mongolia, Sichuan, Guangdong, and Guangxi have cancelled the pilot operation qualifications of 38 small loan companies.

On February 20, the Jiangsu Province Financial Office issued a reply, agreeing to terminate Nantong City Haimen District Sutong Science and Technology Innovation Rural Microfinance Co., Ltd., Nantong City Tongzhou District Hengsheng Rural Microfinance Co., Ltd., and Yizheng City Quncheng Rural Microfinance Co., Ltd. The operating qualifications of the loan company. Previously, on January 16, the Jiangsu Financial Office also approved the termination of the operating qualification of Dadao Rural Microfinance Co., Ltd. in Haimen District, Nantong City. So far, four small loan companies in Jiangsu have exited operations since the beginning of the New Year.

On February 18, the Inner Mongolia Financial Office issued an announcement to cancel the operating qualifications of 10 microfinance companies including Yongfu Microfinance Co., Ltd. in Yuanbaoshan District, Chifeng City. Previously, on January 10, the Inner Mongolia Financial Office had cancelled the pilot qualifications of 16 microfinance companies including Hohhot City Xingyin Microfinance Co., Ltd. These companies were required not to continue to engage in micro-loan business or engage in micro-loan business in disguised form because they met the situation of missing or empty shell, and did not receive statements or defense opinions during the publicity period. A small loan company that has been disqualified from the pilot project shall complete the change registration of the company name and business scope in accordance with laws and regulations, and the words small loan and small loan shall not be used in its name and business scope. After the change, the company will continue to bear corresponding creditor’s rights, debts and related legal responsibilities in accordance with the law.

On February 17, the Sichuan Financial Office issued an announcement agreeing to Jiaming Microfinance Co., Ltd. of Wangcang County, Guangyuan City, to withdraw from the microfinance industry. After withdrawing, the company shall not continue to operate small loan business, and the word small loan shall not be used in its registered name and business scope.

On January 16 and February 12, the Guangdong Financial Office issued an announcement agreeing to cancel the pilot qualifications of six small loan companies, including Chaoan District Rongxin Microloan Co., Ltd. of Chaozhou City and Baoyin Microloan Co., Ltd. of Qujiang District of Shaoguan City.

On January 9, the Guangxi Financial Office approved the termination of the microfinance business license of Beihai City Weiliande Microloan Co., Ltd. and cancelled its “Microloan Company Business License.”

In recent years, with problems such as stricter supervision and intensified competition in the small loan industry, small loan companies have continued to liquidate. In January 2025, the State Financial Supervision and Administration issued the “Interim Measures for the Supervision and Administration of Small Loan Companies” to further refine and standardize the operating behaviors of small loan companies, clarify the business scope and loan concentration ratio requirements, and implement various violations. Strict regulations have been made on behavior. For example, microfinance companies are strictly prohibited from carrying out channel business in violation of regulations, and are not allowed to rent or lend licenses.“”

Data shows that as of the end of December 2024, there were 5257 microfinance companies across the country, with a loan balance of 753.3 billion yuan. At the end of 2022, there were 5958 microfinance companies across the country, with a loan balance of 908.6 billion yuan. In other words, in two years, the number of small loan companies decreased by 701, and the loan balance decreased by 155.3 billion yuan.