Study Of Sustainable Development Of Rural Credit Cooperatve Unions Micriocredit

Microcredit is a popular way for poverty alleviation in the world. It is a special credit that the finance instruments supply financial services to the poor people to help them throw off poverty. Microcredit emerged in 1970's. After 20 years of practice, it has covered almost all of the developing countries and some of the developed countries. The United Nations call 2005 as International Year of Microcredit because of the great achievement.Microcredit came from Bengal in 1970's, while China began to put it into practice in September 1993. There are many effects since it came into china, but we pay more attention to the poverty alleviation and the operation function. Because we haven't pay attention to the finance service function, there is almost no breakthrough in its sustainable development, which is harmful to the sustainable development of microcredit and the poverty alleviation. Microcredit is helpful to the development of Rural Credit Cooperative Unions. Now China Rural Bank and other national commercial banks have evacuated the villages and towns, so Rural Credit Cooperative Unions have became the monopolization in the country finance market. As the main force of the country finance market, Rural Credit Cooperative Unions should make good use of the experience of the microcredit and combine the rural facts. That is to say, Rural Credit Cooperative Unions should realize the sustainable development of the microcredit to increase the income of peasants and develop the rural economics. In a word, it is important to study the sustainable development of the microcredit of Rural Credit Cooperative Unions. The experiences demonstrate that the microcredit instruments can realize their sustainable development, if only the object is correct and the method is scientific.The paper studies the restrictions of the microcredit of Rural Credit Cooperative Unions and analyses the sustainable development strategy of microcredit. Furthermore, the paper indicates that the essence of the microcredit should be commerce loans and the market is benefit for its sustainable development. Then the paper discusses how to determine the interest rate of the microcredit. At last, the paper analyzes the role of the government in the microcredit. The paper points out that microcredit not only can help the poor, but also can achieve its sustainable development.