Research On Sustainable Pricing Of Rural Micro Credit Loan By Example Of Rural Credit Cooperatives In Yaan City

The Rural Micro Credit (Hereafter RMC) started in 1970s abroad, and the success of Grameen Bank in Bangladesh drew the curtains of comprehensive development in an international range. After more than 30 years of developing and improving, it has gotten 47 countries or regions to conduct the RMC right now, also formed the diversified organizations including the NGOs, the Community Cooperative Financial Institutions, the Non-Bank Financial Institutions and the Credit Cooperatives, totally provided financial support for more than 1700 million poor people and absolute poverty.In China, the RMC's comprehensive development started in 1999. At early stage, considering for policy loans, it only could choose lower interest rates in order to achieve the policy aim of benefiting farmers, but as the issuing institution, the Rural Credit Cooperatives (Hereafter RCCs) still did not have the right of pricing independently. With the deeply strategic reforming for national financial market, the social appeals about the interest rate's reforming of RMC became more and more, therefore the government began to reform the interest rates of RMC. Facing the growing right of pricing independently, it has became the problem to be solved for RCCs, which is how to price the scientific and logical interest rates to meet requires of profit and policy simultaneously.By used those methods including Literature Research Method, Questionnaire Method, Case Analysis Method, and Comparison Analysis Method, this paper took the example of Yaan city to analyze those problems exited in development of RMC for RCCs deeply, and then the model checking and discussing on sustainable pricing was done in order to find out the suitable pricing method of RMC.The research contents of this paper was as following:In the first part, it detailed the basic framework of the research, summary on the theoretical results from the aspects of abroad and home was given, and a documentary comment was done, finally the relevant concepts was definited. In the second part, taking the example of Yaan, introduction of the volume, the business process, and the pricing of RMC by RCCs were analyzed. After that, the influencing factors of constraining its sustainable development were found. In the third part, basing on a survey data to farmer, this part made descriptive statistical analysis about the affordable highest interest rate of farmers, and a model testing to get the static or dynamic balance interest rates with the Balance theory and Rosenberg model was done. Basing on above research, the study got the range of sustainable interest rate that taken by both the borrowers and lenders. In the fourth part, after introducing successful cases from domestic and abroad, different pricing methods that maybe suitable for RCCs were analyzed in order to find out the suitable pricing method.Above research, this paper's conclusions were included:First, the most important problem of limiting sustainable development was the difficult of pricing. Second, the range of sustainable interest rate that taken by both the borrowers and lenders was between 16.33%and 18.14%. Third, the most suitable sustainable pricing method for research subject was the cost-plus pricing mechanisms.Based on those conclusions, this paper proposed some relevant advices, such as to gradually perfect and build the suitable and scientific pricing system of RMC from both aspects of talent cultivation and technical abilities firstly, to build the sustainable financing mechanism for achieving the diversity of loan funds by implementing the commercial and market-oriented principle secondary, to gradually build the multi-level system of RMC by relevant departments of government thirdly, to perfect the rural credit environment and increase the agricultural insurance's support fourthly. Finally, the shortcoming existing in this research was given.