Interest-free or part-time loans mainly include the following: first, college students' loans; Second, government loans are used for key projects; The third is loans from poor rural households. Generally speaking, it is not a problem to recover the principal and interest of the first two loans, but it is relatively difficult for poor rural households to get loans.
Poor farmers' loans
In order to support the development of agriculture, rural areas and farmers, solve the problem of rural poverty and develop local economy, many countries and places have introduced various policies to support rural economic development, of which the most common one is interest-free loans. Of course, interest-free loans do not mean interest-free for the whole period. Generally speaking, interest is charged in the first three years, in the fourth year and in the fifth year.
Interest-free loans are designed to help poor farmers start businesses and provide them with start-up funds. But in reality, a large part of interest-free loans are actually conventional loans, that is, using the qualifications of poor households. The actual money was not given to poor households, but was taken by the operators to lend. Of course, these operators are also responsible for repayment, and will give certain funds to poor households as subsidies every year. For this kind of loan, if it is overdue and the operator runs away, he can only bear the expenses himself.
If it is really a poor household who runs a loan, such as opening a farm or planting a farm, once the farmer is really overdue, there are two solutions: (1) extension: assuming that the poor household has enough income to repay the loan in the future (for example, the cattle and sheep on the farm can be released in one year), then banks and other institutions generally lend during the exhibition period; (2) Sharing between local governments and banks: Just like the current re-guarantee companies, the current responsibility for guaranteeing non-performing loans is divided into 442 (40% for the government, 40% for the guarantee company and 20% for the bank). Therefore, many loans to poor households, once overdue, are actually shared by local governments and banks if they are really unable to repay. Of course, it does not mean that the bank will share the responsibility with the government. The borrower's personal credit information will be tainted and may involve litigation. This account will be collected. If the borrower has enough assets in the future, the bank/government still reserves the right to recover from the borrower.
To sum up, interest-free loans for poor rural households are a very good policy. If poor households make good use of it, they can turn over and become rich. If it is used for eating, drinking, whoring and gambling, it should also pay corresponding responsibilities.