In rural credit cooperative loans, the arrangement of one loan repayment per year is due to the bank's consideration of risk control. The loan is usually set for one year. After maturity, if the credit status is good and the bank's re-lending conditions are met, the customer needs to repay the principal and then apply for a loan again. This revolving loan method helps banks evaluate the borrower's operating conditions and ensure the safety of funds. The main goal of credit union loans is to support agricultural production and the rural economy, and for large enterprises, the principal may need to be repaid in full every year.

Credit cooperative loans have their own characteristics: first, the loan targets a wide range of objects, covering different fields such as agriculture, individual economy, rural enterprises, etc., with a focus on supporting agricultural production. Secondly, the loan operation is flexible, the scope and purpose can be determined independently according to national policies, and the proportion of self-owned funds and loan period can also be adjusted within a certain range to adapt to various operating needs. Credit unions also have some flexibility when it comes to loan procedures and interest rates. Finally, due to its regional service nature, the loan mainly serves local farmers and economic development, but can also be extended outside the region when economic conditions permit.

In summary, the rural credit cooperative’s one-loan-one-repayment-a-year strategy is based on risk control and monitoring of borrowers’ operating conditions, and also reflects its flexible loan management and regional services. position.