On March 18, the Fifth Department issued a letter forbidding small loan companies to lend to college students on Sina Weibo hot search list.
On March 17, the banking and Insurance Regulatory Commission, the network information office, the Ministry of education, the Ministry of public security and the people’s Bank of China issued the notice on further regulating the supervision and management of Internet consumer loans for college students (hereinafter referred to as the notice), which prohibits small loan companies and non licensed institutions from granting loans to college students.
The regulatory agency pointed out that recently, some small loan companies, aiming at university campuses, have conducted induced marketing through cooperation with technology companies, and issued Internet consumption loans to college students, which has attracted college students to spend too much in advance, causing some college students to fall into the trap of high amount of loans, infringing their legitimate rights and interests, and causing adverse social impact.
The circular prohibits small loans or non licensed institutions from lending to college students, may not send information about students who borrow money to a third party, or illegally disclose, expose or sell student information on loans. It is not allowed to carry out precision marketing for college students, and it is not allowed to push and drain college students to lending institutions.