On the surface 6.5%, but behind the scenes 36%! Minsheng Loan Assistance is accused of套路收费 and违规担保

In the current environment where the consumer lending industry is tightening pricing and strictly adhering to a 24% overall financing cost cap, Minsheng E-commerce’s Minsheng Loan Assist has been thrust into the spotlight due to high interest charges and frequent compliance issues. Recently, the Fujian Provincial Financial Regulatory Bureau issued a fine to its affiliated financing guarantee company. Coupled with widespread consumer complaints about high interest rates, bundled charges, and lack of transparency, this platform—once transformed from P2P and having issued over 10 billion yuan in loans—is now facing dual scrutiny from regulators and the market. Its business model and compliance practices are under heavy questioning.

The regulatory fine has exposed the compliance risks of Minsheng Loan Assist’s cross-regional operations. Quanzhou Minshang Financing Guarantee Co., Ltd. was fined 50,000 yuan for failing to report its cross-provincial business activities quarterly, highlighting regulatory blind spots in the platform’s expansion. As a core credit enhancement entity within Minsheng Loan Assist, owned 95% by Minsheng E-commerce and responsible for the development and filing of the “Minsheng Loan Assist” app, this company is a key part of the platform’s business chain. The guarantee industry enforces strict local supervision, and cross-provincial operations require proper filing. Its failure to meet quarterly reporting obligations reveals that its compliance management has lagged behind its business expansion, with significant compliance flaws in existing cross-provincial activities.

More concerning is the platform’s complex operational structure, forming a confusing “entity maze.” Currently, the platform includes three related entities: Wuhan Minshang Hui Microloan Co., Ltd., Minsheng Easy Loan, and Minshang Guarantee, responsible for app operation, technical services, and financing guarantees respectively. These entities are based in different regions, hold different licenses, yet serve the same borrowers. Ordinary users find it difficult to distinguish between contract signers, fund disbursers, and fee collectors, with blurred responsibilities. This multi-layered, dispersed entity structure not only increases consumer confusion but also provides operational space for regulatory evasion and fee splitting, contradicting the principles of financial transparency and regulation.

The fine has not yet settled, and complaints are rising again. Since 2026, the Black Cat Complaint Platform has seen a surge in consumer rights claims against Minsheng Loan Assist, mainly pointing to an annualized comprehensive interest rate approaching 36%, hidden high fees, and guarantee costs not included in the cost calculations. Some users have reported borrowing 9,000 yuan to be repaid over 12 months with monthly payments exceeding 900 yuan, totaling over 10,848 yuan, with the combined interest and fees surpassing 1,800 yuan—equating to an annualized rate near the legal limit. Others have been charged thousands of yuan in platform service and handling fees for two loans, with numerous fee types and no prior clear disclosure, suspected of bundled sales and violating consumers’ right to information.

The platform publicly advertises an annualized interest rate starting at 6.5%, which starkly contrasts with the actual costs borne by users. The root cause lies in fee splitting and hidden credit enhancement charges. The new regulations for consumer finance explicitly require that all costs—such as credit enhancement service fees, guarantee fees, and platform service charges—must be included in the borrower’s total financing cost and must not exceed 24%, protected by law. Minsheng Loan Assist separates interest from guarantee and service fees, deliberately downplaying the total financing cost, making the apparent interest rate compliant while the actual cost exceeds limits. This approach clearly violates regulatory requirements for transparent pricing and full-cost disclosure, misleading consumers into unknowingly bearing high financing costs and engaging in illegal fee practices.

In terms of information authorization and privacy protection, Minsheng Loan Assist also exhibits compliance shortcomings. When applying for a loan, users must sign an authorization letter allowing Minshang Guarantee and its affiliates or third-party partners to access personal information. However, the agreement does not disclose the specific list or number of third-party entities involved. Failing to clearly inform users about data sharing violates the core principles of the Personal Information Protection Law—namely, “notice and consent”—and risks excessive collection and disorganized data circulation, posing security risks to personal information.

Tracing its development history, Minsheng Loan Assist’s predecessor, Minsheng Easy Loan, was an internet finance platform that initially built its scale through bill-related business, then shifted to consumer finance and gradually exited P2P lending, completing its transformation into a consumer loan platform. In January 2026, it launched a new product, “Minsheng Loan Assist Pro,” attempting to expand market share by driving traffic through external platforms, creating an ecosystem of mutual traffic promotion across multiple platforms. However, the transformation has not resolved compliance issues. Under the new consumer finance regulations and industry reshuffling, its high-interest model and compliance gaps have become more glaring. Mainstream industry players have already reduced their comprehensive financing costs below 24%, yet Minsheng Loan Assist still maintains nearly 36%, diverging from industry consensus and facing increased regulatory pressure to adjust.

Although it has shifted from P2P to a loan facilitation model, Minsheng Loan Assist has not truly established a compliant operational mindset. Its failure to report cross-provincial operations, lack of transparent costs, insufficient disclosure, and inadequate consumer rights protection reflect a reckless growth approach that prioritizes expansion over compliance. For guarantee companies, reporting cross-provincial activities is a regulatory bottom line; for loan facilitation platforms, transparency of total costs is a compliance lifeline. Minsheng Loan Assist falls short on both fronts, and behind its hundreds-of-billion-yuan business scale lie significant compliance risks and potential consumer rights infringements.

As the national Financial Supervision and Administration Bureau’s new regulations for loan facilitation are implemented and local regulators intensify oversight, non-compliant platforms will face accelerated cleanup. If Minsheng Loan Assist continues its high-interest practices and disregards regulatory rules and consumer rights, it may sustain short-term operations but will ultimately be phased out in the wave of compliance enforcement. The platform’s immediate priority should be to overhaul its fee structure, include all costs in the annualized rate calculation, fulfill cross-provincial reporting requirements, and transparently disclose partner organizations and fee standards. Regulatory authorities and the market will continue to monitor closely, urging the platform to return to the essence of inclusive finance, abandon high-interest tricks, and uphold compliance.

Source: Jiuzhou Business Observation

Author: Jiuqiu Xiaomei

Disclaimer: This article is for informational sharing only and does not constitute investment advice. Any investment decisions made based on this content are at your own risk.