Alibaba launched Ali Micro Loan to provide small and micro business owners with capital shortage services. Small and micro enterprises can borrow and repay as needed. As long as the company has good qualifications, good qualifications determine whether to lend. Ali Micro Loan does not require any guarantee or mortgage, which greatly reduces the threshold for small and micro enterprises to finance.

Ali Credit has two flexible and easy loan models. At present, Ali Credit has two main models. One is revolving loan, which is to circulate within the prescribed loan amount. You can also choose a fixed loan to use funds. For example, if a borrower applies for a loan, he can borrow and repay as needed within the loan period. This type of loan is relatively flexible and more popular. Due to its greater flexibility, the loan interest rate is naturally higher. The other is a fixed loan, which is a one-time loan issued to the applicant for repayment on schedule after obtaining loan approval. The borrower cannot borrow and repay the loan as needed, and the interest rate is lower. Ali Micro Loan analyzes a large amount of information on Taobao and uses Alipay to issue loans to everyone. This approach is completely different from that of banks. It is an automatic lending mechanism. All the behaviors of Taobao merchants constitute the pricing of their own risks. Then Ali Microfinance will grant them credit lines based on risk pricing, and they can borrow and repay at any time. Ultimately, a dynamic risk pricing process is formed.