Farmer loans refer to the act of financial institutions providing loans to rural residents. Because many rural residents lack funds and credit guarantees, they are unable to obtain bank loans. Compared with urban residents, their income levels are lower and their economic risks are greater. Therefore, the emergence of farmer loans is to solve the financial problems of rural residents and promote the development of rural economy.

The risks and challenges faced by farmers’ loans are also great. First, economic conditions in rural areas are often worse than in cities, which increases the risks for banks. Secondly, compared with urban people, farmers have relatively few credit records for borrowing, making it difficult to conduct credit assessment, which also brings greater difficulties to financial institutions. However, even in the face of so many problems and challenges, banks still insist on providing loan support to farmers to help the development of the rural economy.

With the continuous improvement of China’s national policies, rural finance is in urgent need of innovation and reform. Targeting the rural household loan market, banks continue to launch new products, increase loan thresholds and reach out to more potential customers in order to provide more and better financial services to rural residents. In the future, as China's urban-rural integration continues to advance, we believe that the rural economy will usher in better development opportunities.