Judging from the reasons for the emergence of private lending, firstly, the need for borrowers to maintain a good personal credit record provides space for this kind of private lending. In the survey, only 68% of farmers actually use loans for agricultural production, 24% of farmers use loans for building houses, getting married for their children and even buying luxury goods such as family cars, and the remaining 8% of farmers use loans for other purposes. When it's time to repay the loan, many people can't afford it. Therefore, private lending promoted by "reverse lending" has become the main way for them to "maintain" their credit and continue to use loans. In the survey, 28% of farmers need "reverse loans".

Second, lenders firmly grasp the borrower's urgent psychology and high-return profit opportunities, resulting in private lending to provide funds for "reverse lending" and provide farmers with "transitional" funds from repayment to refinancing. At present, some towns and villages specialize in private lending in this area.

Third, the unscientific repayment of loans by agricultural financial institutions gives private lending an opportunity. At present, the competition in the rural credit market of agricultural financial institutions within their jurisdiction is fierce, and most of them adopt the practice of collecting loans around the end of the year. Although rural agricultural loans can be extended, the requirements for extension are very high. None of the 65,438+000 families surveyed applied for loan extension. At the same time, the loan period of agricultural financial institutions to agriculture is short, generally lasting until the end of 1 1. At this time, farmers' grain has not been listed in large quantities, or farmers do not recognize the price of grain, or there are no enterprises and individuals to buy it, and the grain has not been sold. Farmers have no cash, and they have to borrow money when the loan expires. In the survey,/kloc-0.5% farmers had to take the road of private lending because the food was not delivered in time.