Research On The Origin Factors Affecting The Sustainable Development Of Rural Microcredit

Microcredit is a small amount of credit services to low-income people and micro-enterprises. Small amount, serve the poor, and unsecured are the basic characteristics of it. Rural microcredit is of great significance in promoting China’s economic development in rural areas, and helping the majority of farmers out of poverty. But until now, the rural microcredit in china hasn’t achieved sustainable development, credit constraints remains a serious problem in rural areas. Analysis of the reasons for this situation, a lot of viewpoints regard interest rate is the crux of the problem, they believe that in order to achieve sustainable development of the rural microfinance, we must implement a more market-oriented interest rate mechanism, expand the floating range of interest rate. Is that true? Since we all think interest rate is the origin factor affecting the sustainable development of rural microcredit, why don’t we release the interest controls of rural microcredit? What do we worry about? Maybe there are some other factors behind in the interest rate; our purpose is to identify these factors.Based on the economic interests of rural microcredit’s supply and demand sides, this paper uses the method of game to seek the origin factors that influences the sustainable development of rural microcredit. Specifically, we discuss the requirements for banks’voluntary loans in the frame of peasants’voluntary repayment. According to our research, we found that unit cost of credit, the level of agricultural technology, production inputs, the average price of agricultural products is the origin factors affecting the sustainable development of rural microfinance. We can achieve these goals by increasing agricultural technology, improving the allocation efficiency of agricultural productive factors, strengthening the circulation system of rural markets and developing the agricultural insurance.In this paper, we take a new perspective, and come to a conclusion different from the traditional view. In order to develop the rural microcredit, only the financial support is not enough, we need some supporting measures.