Research Of Evaluate Of Credit Of Micro-Business Under Microfinance

With the development of the society and economy of our country, the traditional finance market has become divided markets, each of which needs different risk management technique. This phenomenon is attributed to the fierce competition of banks and the quickly development of micro-business. On one hand, more and more banks take part in the finance markets. Lots of small and medium-sized banks tend to small business when confronting the competition. On the other hand, a big part of rural migrant workers will choose to start their business with the upgrading of the industrial structure. They need financed when their business begin. All of these need innovations of risk management technique.In fact, all we need to do is to find a bridge to connect the bank's profit and the needs of micro-business. Credit score, discussed in this paper, is one of solutions.Micro-business is a new perception to us in China, which was invented after the 2008 Finance Crisis. The paper defines Micro-business at first, then introduces the studies of the credit score of micro-business and micro-finance. The application cases about credit score and micro-business are also introduced. Considering lots of models about credit scoring, I choose logit model in this paper, which is a relatively mature model. We introduce the general principal and hypothesis of the model. The data used is from a survey in the east of Anhui Province.Afterward, we discuss the usage of credit score in the decision of lending rate, lending amount and so on. In the paper, we also discuss the change of the model in group lending.