Poverty alleviation loan is a policy loan business undertaken by domestic financial institutions. It is an important part of poverty alleviation and development in China. There are two main forms of distribution: one is small poverty alleviation loans to households; The other is poverty alleviation loans and infrastructure construction for leading enterprises. As a local financial institution, rural credit cooperatives are the financial institutions with the largest number of institutional outlets, the largest number of employees and the widest range of services and objects in the province, so poverty alleviation loans are generally sponsored by rural credit cooperatives.

Poverty alleviation loans are supported by the state finance, and generally there is a state discount policy. According to the State Council, "since 2000, new poverty alleviation loans, refinancing poverty alleviation loans, and new poverty alleviation loans that have not expired in the previous year have all been included in the poverty alleviation loan plan of the year; According to the decision of the Ministry of Finance to give discount according to the annual poverty alleviation loan plan, the central finance will give discount within the scale of the annual poverty alleviation loan plan approved by the State Council, and in principle it will only be posted for one year.

The choice of the borrower of poverty alleviation loans is an important "threshold" for poverty alleviation loans. Strengthening the strict requirements on the conditions of poverty alleviation loans is mainly to prevent the risks of loan projects. As a government department, it is more hoped that loans will be invested in enterprises with production difficulties and farmers who urgently need to solve poverty. As the main body of loans, banks first choose enterprises and individuals with repayment ability. According to Nongyinfa [1998] No.99 "Administrative Measures for Poverty Alleviation Loans of Agricultural Bank of China", the capital of processing industries and poverty alleviation economic entities with planting, forestry and fruit products as raw materials shall not be less than 20% of the total investment. At present, a considerable number of enterprises in our state have suffered serious losses and their own funds are seriously insufficient, which undoubtedly makes most enterprises refused poverty alleviation loans. Enterprises, for individuals in poverty-stricken areas, are really too poor to repay loans, which also makes credit subjects lose confidence in them, thus intensifying the contradiction between the demand of credit subjects for poverty alleviation loans and the choice of credit subjects.