Rural microfinance is an important funding channel for my country’s rural economic development. However, as this project progresses, problems such as government intervention, limited loan interest rates, and lack of supervision have begun to emerge and become obstacles to the development of small businesses. obstacles to the further development of credit. Next, I will explain the role of rural microfinance for everyone, and I hope it can help you.

The role of rural microcredit

1. The importance of promoting the microcredit system in my country

In recent years, with the continuous development of our country’s economy, the financial system With the gradual improvement, my country's rural financial reform and development have achieved positive results: First, the reform of rural financial institutions has steadily advanced. Second, loans to agriculture, rural areas and farmers continued to grow. As of the first half of 2006, my country's agricultural loan balance was nearly 3 trillion yuan, accounting for approximately 14% of the total loan balance of financial institutions. The loan needs of more than 60 farmers have been met. However, there are also outstanding contradictions and problems in the current rural financial reform and development:

(1) Problems in my country's current agricultural financial system

First, there is a serious capital outflow in rural areas. At present, through commercial financial organizations such as rural credit cooperatives and postal savings, the outflow of funds from rural areas is greater than the inflow from cities every year. As a result, the funding needs for agricultural and rural economic development cannot be effectively met, rural economic development is hindered, and the gap between urban and rural areas is Too big.

Second, the rural financial institution system is imperfect. Since the reform of commercial banks, several major banks have withdrawn their business outlets in rural areas in large numbers. At the same time, the construction of financial institutions serving "agriculture, rural areas and farmers" has not kept up, resulting in low coverage of institutional outlets and farmers' acceptance of financial services. Service is difficult.

Third, there is insufficient innovation in financial products and low profitability. Existing rural financial institutions mainly operate traditional credit products and commercial insurance products. However, small loans and agricultural insurance, which have a large demand for farmers, lack innovation, resulting in a single financial product and a serious lack of profitability, resulting in a lack of sustainable development. The foundation is weak, and some informal rural financial organizations have developed rapidly because their financial services are more in line with farmers' needs, but the potential risks are greater.

Microcredit, as a model for providing financial services to low-income people, is a financial system in developing countries at a specific stage of development. This system is not only a financial service product, but also a approach to social development. Developing countries have formed a variety of specific models in the practice of microfinance. The basic starting point of each model is to provide financial services, especially credit services, to low- and middle-income people, and to effectively control risks. Introducing the small loan system into the rural financial market based on the characteristics of my country's rural areas will help fill the current gaps and needs in rural finance. At the same time, it will have a huge potential to promote the development of the rural economy and farmers' living standards.

(2) The significance of the promotion of the small loan system to my country's rural development

1. Expand the scale of rural credit, optimize the structure of the rural credit system, and invigorate the rural economy

The introduction of microcredit will provide a source of funds for borrowers and township and village enterprises in low-income rural areas, expand the scale of loanable funds while effectively curbing lending risks. On the other hand, it corrects the long-standing imbalanced lending structure, mobilizes the enthusiasm of various groups to participate, and activates the entire rural economy.

2. Improve farmers’ living standards

The increase in credit input by farmers has promoted the development of the rural economy, improved agricultural output efficiency, and fundamentally increased the income of farmers. The improvement of agricultural production level directly affects the consumption level and consumption intention of farmers. At the same time, microcredit has a significant positive impact on the per capita net income of farmers' quality of life indicators in eastern, central and western China, and has a significant negative impact on the Engel coefficient. This shows that microcredit has a significant role in improving farmers' quality of life. . From these factors, we can see the huge influence of developing microfinance and expanding its scale in rural areas of my country.

Lack of policy environment (legal status) for the development of microfinance organizations

Difficulty in achieving financial sustainability (interest rates, funding sources)

Microfinance Credit organizations cannot accept savings deposits from the public and have no normal financing channels (sources of funds)

Lack of independence of institutions and personnel (high fixed costs, large-scale integration and recruitment of professionals)

4. Suggestions for further improving rural microfinance in my country

(1) Improving regulatory measures

In terms of regulatory policies and risk control, implement non-prudent and industry self-discipline-based regulation Policies and control mechanisms with appropriate leniency and severity

. Faced with the current high degree of information asymmetry and the fact that regulatory costs are too high between microfinance institutions and high-level regulatory authorities, non-prudential, industry (microfinance association) self-discipline is mainly implemented under the guidance and authorization of the central financial regulatory authorities. Supervision policies are both necessary and feasible.

First of all, by conducting access assessments for microfinance institutions that join the association, regularly collecting financial information and operating conditions of each institution, and reporting to the financial regulatory authorities on a regular basis, this can solve the problem of supervisors and supervisees. information asymmetry between them; secondly, microfinance associations can actively coordinate with the central financial regulatory authorities and relevant government departments on policy issues for the development of microfinance, seek policy, legal and financial support, and provide The development of credit strives for a better macro environment. Promote the innovation of rural financial products and expand business varieties

(2) Set reasonable loan interest rates and appropriately relax interest rate restrictions

Let financial institutions participating in microfinance make profits, which is the key to financial The fundamental guarantee that institutions are willing to expand and can continue to provide microcredit. As the degree of commercialization of banks in our country increases, an unavoidable reality is: if rural credit cooperatives suffer long-term losses in microfinance projects and do not receive subsidies from relevant departments, then the current microfinance work will not be sustainable. Go down. In order for financial institutions that carry out microfinance to obtain benefits, the key is the level of interest rates. Microfinance has different operating procedures from general bank loans. It has the characteristics of small amount and high cost. Only a high deposit-loan difference can make up for the operating costs. It cannot be covered by the interest rate levels of general banks for industrial and commercial or even larger agricultural projects. Microcredit interest rates. Appropriately relaxing restrictions on microfinance interest rates and seeking a win-win situation for the interests of rural credit cooperatives and farmer financing is one of the key factors for the healthy development of microfinance projects.

Financial institutions may appropriately relax loan restrictions with the approval of superior regulatory authorities. If the loan period is appropriately relaxed, the loan amount is appropriately increased, and the loan repayment methods can be diversified. On the other hand, small pledge loans should consider piloting bank time deposit certificates, certificate-type treasury bonds, book-entry treasury bonds, insurance policy pledges and other credit businesses.

(3) Government financial support

The development of microfinance cannot be separated from the support of the national government. For rural areas with insufficient credit funds, the central bank must actively unblock the monetary and credit policy transmission mechanism. , guide the financial institutions in the jurisdiction to focus on supporting, and gradually establish a market-oriented modern agriculture that integrates trade, industry and agriculture.

In addition, give priority to advantageous projects. Strengthen credit investment in agriculture and agricultural products with comparative advantages, especially support high-tech agriculture, specialty agriculture, order agriculture, foreign exchange-earning agriculture and deep processing projects of agricultural and sideline products, and promote agricultural industrialization. For example, we should always put support for basic crops such as grain, cotton, and oil in a prominent position, break through the traditional model of "spring loans and autumn harvests", and relax the repayment time of farmers' small loans in accordance with the industry cycle, nature and characteristics; gradually increase the amount of credit investment, Expand the scope of issuance, relax loan limit restrictions; and adjust credit channels according to market needs, actively support farmers in adjusting the agricultural industry structure, vigorously develop the production of agricultural products that are in demand by the market, are profitable and have wide sales, improve the quality of agricultural development, and increase farmers' income. income.

(4) Improve the quality of credit personnel and vigorously promote farmers’ loan certificates.

Establish an effective incentive mechanism, fully mobilize credit personnel to go deep into farmers' households, investigate the actual situation, understand farmers' use of loans and the difficulties and problems encountered in the production and operation process, establish farmers' economic files, and use credit Taking advantage of the company's extensive social connections, it provides farmers with information, technology and consulting services, and serves as a good consultant for farmers to get rich. Increase innovation efforts, promote farmer loan certificates, simplify loan procedures, facilitate farmers' loans, make farmer loan certificates a green card for farmers' loans, enable credit officers to truly serve farmers, and establish a good image.

(5) Strengthen the risk prevention of micro-credit loans

In terms of ideology, on the one hand, we should increase publicity and cultivate a good social integrity environment. Relevant financial institutions should actively participate in the promotion of integrity and create an atmosphere of "integrity first" in society through various forms. On the other hand, staff should make farmers clear about the nature and legal responsibilities of microcredit, so that farmers can increase their awareness of abiding by the law.

Establish a scientific and standardized repayment monitoring system on the mechanism to reduce the non-performing loan rate and improve the efficiency of loan use. The main purpose is to increase the supervision of rural borrowers and lenders, establish a reasonable credit rating system, and form an effective repayment monitoring system from lending to recovery. On the one hand, we conduct strict credit surveys on farmers and conduct feasibility studies on projects to ensure that loans can be recovered in a timely manner. Through loan knowledge training for farmers, we strengthen their credit awareness and knowledge of loan usage rules; on the other hand,

Supervise credit officers, generally by reviewing the business they handle, and stipulate that employees are not allowed to lend money to their relatives or related persons. If a loan is needed, a loan application must be issued stating the purpose. If necessary, employees must issue a joint liability guarantee , and at the same time, we must also prevent employees from making mistakes in loan inspections.

The improvement of the rural credit system is a major systematic project. Our country has a vast territory, uneven economic development, a large gap between the eastern and western rural areas, and there are also great differences in rural credit work in various places. In order to really do a good job in credit work in rural areas, truly realize the financial services for "agriculture, rural areas and farmers", so that the vast number of financial institutions in rural areas can substantially support the development of local social economy, we also need the multi-faceted efforts of various entities. * With joint efforts, the government must provide policy support from the system.

Grading assessment of rural micro-credit

(1) Farmers apply for assessment to the credit cooperative.

(2) The account manager (loan officer) conducts a detailed investigation of the farmers who apply for credit rating, including:

1. Check the applicant’s valid identity document and review whether the applicant has If you are a farmer in your jurisdiction, do you have full capacity for civil conduct?

2. Whether the applicant or family members have labor production or business management capabilities;

3. Verify the property and comprehensive income ;

4. Is the borrowing demand reasonable?

5. Does the applicant have any bad credit record in rural credit cooperatives and other financial institutions?

6. The village committee and village representatives consult the household's credit status;

7. Other relevant information.

The account manager (loan officer) must rely on the village committees and villager representatives to carefully assess the farmer's credit rating through evaluation, fill in the "Farmer's Economic File" based on the investigation content, and put forward preliminary opinions on the credit status assessment.

(3) The account manager (loan officer) will submit the signed "Farmer Economic File" to the credit business approval team, which will then submit it to the credit business approval team based on the account manager's (loan officer) preliminary review opinions and assessment standards. Evaluate the applicant's credit rating.

(4) The credit business approval team holds regular or irregular farmer household credit rating meetings to assess the reported farmers, and issue "Farmer Loan Certificates" based on the assessment results, clearly indicating the credit rating and loan limit. The approved loan limit shall not exceed 70% of the farmer's comprehensive income for the year (excluding other debts that need to be repaid that year). The "Farmer Loan Certificate" should be stamped with the official seal of the credit union and signed by the leader of the assessment team.

(5) The credit business approval team will submit the "Credit User Assessment Record" to the credit back-office staff to register the "Farmer Economic File".

The origin of rural microfinance loans

In order to support the development of agriculture and rural economy, improve the credit service level of rural credit cooperatives, increase credit input to farmers and agricultural production, and simplify loans Procedures, in accordance with the "Law of the People's Republic of China on the People's Bank of China", the "Law of the People's Republic of China on Commercial Banks" and the "General Rules of Loans" and other relevant laws, regulations and rules, rural credit cooperatives were established in 2001 Launch a new type of loan? Small credit loan for farmers. Small credit loans for farmers refer to loans issued by rural credit cooperatives to farmers within an approved amount and period based on the creditworthiness of farmers without the need for mortgage or guarantee.