MICROCAPITAL BRIEF: China Commercial Credit Launches Online Loan Portal “Pride Lending Group”

China Commercial Credit, a microcredit company based in the Chinese city of Suzhou, recently announced that it has launched an online lending portal called Pride Lending Club.The website pairs potential lenders with prospective borrowers, which may include small and medium-sized enterprises, farmers and individuals in China. Pride seeks to increase the likelihood of repayment by requiring a guarantor to insure each loan. Currently, Pride has partnered with four guarantors that each may guarantee an aggregate principal amount of USD 55 million.

After Pride determines that a loan has been insured by a guarantor, it is posted on the website and a bidding process among interested lenders will begin. The lender that offers the best terms will have the opportunity to extend the loan to the borrower. Pride will receive management fees of one to two percent of the principal of the loan and “eight percent of the interest received by the lender.”[1]

China Commercial Credit provides business loans and loan guarantee services to small and medium-sized enterprises in the Chinese province of Jiangsu Province. It reported total assets of USD 113 million as of December 2013.

By Juan Blanco, Research Associate

About China Commercial Credit

China Commercial Credit is a microcredit company based in the Chinese city of Suzhou. The company was founded in 2008 and provides business loans and loan guarantee services to small and medium-sized enterprises in the Chinese province of Jiangsu. It reported total assets of USD 113 million as of December 2013.

Sources and Additional Resources

[1] The Wall Street Journal, “China Commercial Credit Launches Pride Lending Club Online Loan Portal,” April 8, 2014, http://www.marketwatch.com/story/china-commercial-credit-launches-pride-lending-club-online-loan-portal-2014-04-08?reflink=MW_news_stmp

MicroCapital Story, November 21, 2013, “International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-31m-to-fullerton-credit-to-support-small-medium-sized-enterprises-smes-in-china/

MicroCapital Story, December 13, 2011, “Looking to Cut Out Middleman, Samrudhi Microfin Society (SMS) Launches Online Lending Portal, WeCareIndia.Org,” https://www.microcapital.org/microcapital-brief-looking-to-cut-out-middleman-samrudhi-microfin-society-sms-launches-online-lending-portal-wecareindia-org/

MicroCapital Universe Profile: China Commercial Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=China+Commercial+Credit

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