Research On Farmers’ Micro-finance Credit Evaluation Based On Factor Analysis

The effective operation of microfinance plays an important role on solving of " Problems about Agriculture, Rural areas and Peasantry", and farmers’ credit evaluation has a direct impact on the accuracy of microfinance reasonable payment. Current microfinance credit evaluation system is still not perfect, whether it is from the interior of the credit evaluation system, the awareness of farmers and evaluation institutions still exists a lot of problems. Only solve these problems, to promote the perfection of farmer credit evaluation system, in order to enable microfinance institutions on the farmers’ credit make correct judgment, so as to facilitate loans issued to accelerate rural economic development. In this paper, the microfinance credit evaluation research, in order to make up for the defect of small farmer credit evaluation system, promote the smooth issuance of microfinance, make small loans to play a supporting role, and on financial institutions for small loan risk prevention is of great significance.The theoretical analysis, we defined the conditions apply for small loans to farmers,farmer credit characteristics of microfinance, microfinance credit rating, making the farmers credit evaluation system, to involve economics knowledge-based analysis the importance of the proper credit evaluation for farmers. The empirical analysis, this paper from the four aspects of basic situation, household assets, loans and credit situation, selected 17 farmers credit evaluation index and using descriptive statistics analysis; through field research in three counties in the Guanzhong area of Shaanxi Province, received a total of 401 valid questionnaires, the dependent variable is divided 34 "bad credit farmers" and 367 "good credit farmers", first through the factor analysis method to simplify the 17 indicators into 7 factors,the model equation using two element Logistic model of farmers’ credit quality recognition,the accuracy of test model identification of farmer credit reached 96%, according to the results of the model analysis the influence of 7 factors in the credit evaluation conclusion, and put forward the corresponding policy suggestions, aiming at the credit evaluation system of the evaluation mechanism of internal risk control and credit farmers improve their credit consciousness.This paper argues that: First, the impact of credit based impact factor, credit guaranteefactor, impact factor, nature of the loan credit quality factor of farmers’ credit significantly affected, while the population factors, environmental factors, personal characteristics and influence factors of farmers’ credit were not significant; Second, four significant effects on farmer credit evaluation of it from high to low is the credit guarantee factor, impact factor,credit based loan credit quality impact factor, impact factor in factor; Third, influence factor,credit guarantee credit foundation influence factor and the nature of the loan impact factor has a positive impact on small farmer credit evaluation, and the nature of the loan loans to small farmers credit factors the evaluation has a negative impact.According to the research conclusion, we take these microfinance households credit rating measures account: First, we should establish a sound scientific credit rating system, for example,especially in the assessment of household credit in accordance with the evaluation of farmer credit in order of importance according to measure, to ensure that farmers ‘credit evaluation system scientifically and continually, the farmers credit file resource should be share and norms intermediary rating agencies are in needed; Second, to increase the financial institutions internal risk control efforts, embodied in the internal financial institutions to establish the concept of micro-credit risk, plus Great accountability efforts and establish a scientific and rational internal customer credit evaluation system, in addition to pay attention to the review system and strengthen post-loan supervision; Third, increase farmer awareness of microfinance credit, such as increase microfinance services propaganda, establish incentive mechanism legal compliance and cultivate a good credit environment.