A Study Of The Realistic Predicament And Legal Countermeasure Of Loan Hardship For Peasants

Constructing the rural financial system is the key to solve the issues of peasants, countryside and agriculture, because the agriculture development, rural prosperity and the increase of peasant's income can not be developed well without the financial supporting. But the rural financial system and the rural financial law system has a lot of problems in our country which make the peasants could not gain loans easily and seriously affect the development of rural economy.This article will start from the current situation of the rural financial institutions, using figures to prove the difficulty of peasants in getting loans. Summarizing the main reasons of this phenomenon and analyzing Taiwan's experience, present in this article the author's initiative opinion on how to improve the legal system of rural financial law system, increase the guaranty, build up the rural credit environment and improve the agricultural insurance system.The article consists of four sections:The first section, the author will briefly introduce the current situation of the rural financial institutions in our country. In order to illustrate the peasants difficulty in getting loans, the author use the national and the individual village's data to prove the current lack of financial capital of the peasants. The author also analyze the drawbacks of the current micro-credit loans in our country.In the second section, the author will emphatically analyze the main reasons why the peasants are difficult to obtain loans which include the incompleteness of current rural financial law system, the lack of guaranty, the weakness of credit environment in rural area, and the absence of the agricultural insurance.In the third section, the author will introduce the rural financial system of Taiwan and the main reasons why their rural financial could develop well and the peasants could obtain the loans easily. From such experience, we may gain some enlightenment regarding how to solve the problem of farmers difficulty in getting loans.The fourth section is the most important part in the whole article. The author will, basing on the issued in the front part of the article, present his own opinion and suggestion on enacting the cooperative finance, increasing the guaranty, building up the rural credit environment, establishing the agricultural insurance mechanism in the aspect of system creation and improving the legislation, law revision and so on.