Study On Development Of Small Loan Companies In Huaihua City

As a new financial institution service in the "three rural issues" and SMEs, small loan company help SMES and the individual businesses to solve the problem of insufficient funds. At the same time by guiding funds to rural areas, small loan companies also play an important role in improve rural financial services environment. Huaihua is the first city in Hunan to start the small loan company. In the government and community’s support, the experimental work carried out smoothly. However,the city’s five small loan company still have some problems.Such as lack of funds, loan technological innovation is not enough, ineffective agriculture on a range of issues.This paper selected small loan company in Huaihua as the object of study and analyze the development of it through case analysis method. The paper will have a realistic significance in Huaihua small loan companies.Based on the asymmetric information theory, This paper taking the five small loan companies opening at the end of the2011in Huaihua as an example,discuss the definition and meaning of existence of the small loan companies, and explain the theoretical basis for micro finance. Then from the inside and outside environment, pointed out the constraints factors of micro-credit companies in Huaihua. The paper from the basic patterns and characteristics of the more successful foreign microfinance operations, to explore the main successful experience; the last part of the paper combined with local realities, proposed from improving the small loan companies’external environment and their own construction.