China has banned online loans to college students.
中国已禁止对高校学生的网络贷款。
Financial institutions not registered or
authorized1 by regulators are now banned from offering loans on campus, said a recent notice by China’s
Banking2 Regulatory Commission, the
Ministry3 of Education, and the Ministry of Human Resources and Social Security.
The notice said existing online lenders must withdraw from the market. Those who refuse will be shut down. Institutions suspected of
malicious4 fraud, violence, and spreading obscenities will be subject to
prosecution5.
Campus loans have been a
brewing6 problem in schools across China. Some students who fall into this financial trap have been reported to have committed suicide, ran away from their homes, or settled their debts with sexual favors.