Studies On Mode And The Innovation Of Farmers’ Mortgage Loan

The “loan obstacle”about farmer has always been one of the mostimportant issues in the rural economic development which block the farmers’enthusiasm in the production of farming. In2009, the central bank of China putforwards the economic development strategy that aims at “Sustaining economicgrowth, expanding domestic demand, adjusting structure” in order to prevent the realeconomy from the financial crisis. The central bank takes the positive fiscal policyand the moderately loose monetary policy. And at the same time, the central bankcontinue to focus on the “Agriculture, the rural areas, and farmers” and provide themonetary support to the agriculture. However, in the existing credit market, thecontradiction between the increasing demand of credit for farmers and the reluctant tolend of the financial institutions has been the biggest problems in the process ofnational rural credit policy implantation. How to regulate the imbalance has becomethe key point within the civil scholars.The main reason of the “loan problem” is the farmers hardly to provide thequalified collateral and the commercial banks reluctant to lend. The way to deal withthe difficult is that we should set up a new mode which makes the limited mortgage offarmers be applied to the actual loan process effectively. Earlier, the state for theconcerning on the protection about the land makes many restrictions and limitations inthe selections of the mortgage goods that make the loan difficult to achieve. But now,with the convening of the Third Plenary Session of the18thCPC Central Committee,the restrictions have a historical breakthrough. The Decision on Major IssuesConcerning Comprehensively Deepening Reforms raises the new deepen innovationplan about the rural finance. The Decision contains many groundbreaking reformopinions in allusion to the puzzle that hinder the development of rural financialmarket for a long time.No matter we concern the long term goals of rural economical development orthe farmers’ own request, the comprehensively deepen reform of rural financialmarket will become the most important revolution strategy of China in the future.This paper is based on the need of reality, synthesizes the development experience, sums up the suitable modes selection for farmers to apply for loan. The innovation ofthis article is: From the banks’ point of view on safety, we set up a mode to evaluatethe goods in the mortgage collateral loans. The mode improves the feasibility of thecollateral loan while reduce the risks of the loan.