Sustainable Development Of Small Loan Companies

With the slow development of Chinese rural finance, microcredit companies grow up as a new type financial institution adjusted to Chinese character. In December2005, microcredit companies were first piloted in five provinces of Shanxi, Guizhou, Sichuan, Inner Mongolia and Shaanxi. Microcredit companies have developed for more than seven years with remarkable achievements, and the amount of microcredit companies has been more than6080by the end of2012with loan of592.1billion, accounting for more than4%of the annual total social financing. With their high development, microcredit companies are faced with many problems from macro and micro, which will constrict their sustainable development. After field research, we deeply analyze the causes of the problems, and hope to conclude some suggests from macro and micro, to make them healthier and develop more sustainable. This paper is divided into three parts with six chapters:Part one:Introduction and literature review. First introduce the meaning of sustainable development of microcredit companies, the research method, the framework and main innovations. Literature review includes domestic and foreign literature review. Foreign literature review focuses on credit risk and interest rate pricing; domestic research focuses on operational management and sustainable development.Part two:after describing the development of our microcredit companies, we list Wenjiang District Jin Suixin microcredit Limited as a case, and deeply analyze its business and problems.Part three:we analyze the reasons restricting microcredit companies’ sustainable development and make some recommendations.After an deep research and an three month’s part-time job in a microcredit company, I take full participation in the company’s management, collect and analyze data, and design an innovative credit products and some suggestions on operational management. Finally, with the help of previous research and the situation of Microcredit Company, we conclude the reasons restricting their sustainable development after deeply analyzing Wenjiang District Jin Suixin microcredit Limited, and some recommendations from micro and macro aspects to make them develop more sustainable. This is The main innovation of this paper.