The Research On Development Model Of Rural Micro-credit In China

Because the agriculture has the typical characteristics of high-risk, low-income and low level culture of rural, the investment funds in agriculture is generally too small in China, which leads to the development of agriculture lags. With the increase demand in agricultural funds, the credit demand is also rapidly growing, but the problem of "loan difficult" has plagued farmers, and directly restricts the development of the agriculture, so it is necessary to explore the future development model of ruralmicrofinance.Firstly, this paper describes the theoretical basis of the development of rural microfinance from the conceptual aspects, types, characteristics and basic operation mechanism, and makes economic analysis on rural microfinance to prove that it is necessarytoappear adverse selection and moral inevitability risks in the rural credit market. And then the paper focus on some foreign typical microfinance development models, such as:the Grameen Bank(GB) model, IndonesiaBRI model and India SHG model, analyzes themand gets the conclusion that these foreign rural microfinance models have the feature of government support, flexiblecreditinterest rates and professionalcredit institutions. It makes a detailed analysis to the basic situation of the rural microfinance development, and cites several areas of characteristic credit models and analyzestheir problems. Finally,with respect to the researches on microfinance models, this paper provides some policy recommendations that if rural microfinance wants to have long-term sustainable development, the key is to the innovate its development model. this paper proposes the model of "Government+credit institution+insurance+rural grassroots organizations+farmers ", it can play an active role of all parties involved, and promotes jointly the development of rural microfinance. In addition, the article puts forward to some specific policy recommendations:increase the support to rural microfinance and strengthen the supervision to rural microfinance, improvethe credit system about microfinance market and promote the development of agricultural insurance.