Sustainable Development Of Peasant Household Small Loan

As we all know, China is a large agricultural country, the rural areas of the financial market is weak, the "three rural" issue has been the attention of government, society and academia. By the end of 2015, the central document have emphasis on the "three rural" issue for 13 years, aimed at the development of inclusive finance, rural finance system, to promote rural economic development. This is enough to see the government attached considerable importance to the "three rural" problem. Rural residents generally do not have a fixed source of income, asset accumulation is weak, there’s a big demand for funds. Peasant household small loan as rural services business features, just to help low-income farmers to ease the financing difficulties.Agricultural Bank of China, as one of the commercial banks of all countries, was entrusted by the state service "three rural" policy requirements since the reform of 2007. In 2007, ABCs based on practical experience in the industry and launched the "Peasant household small loan" service, the service fully reflects the Service purposes of ABCs, designed to serve the "three rural" small loans for low-income farmers. The rise of peasant household small loan not only ease the financing difficulties of farmers, but also to optimize the credit structure of assets of the bank and expanded the types of services. In 2015, Peasant household small loan has developed seven years, reaching 650 billion cumulative delivery. It has made remarkable achievements, but there’re still some problems in marketing, warranty, management, profitability and risk. In this context, it’s important to explore how microfinance achieve sustainable development.In this paper, we use the method of literature research, case studies, macroscopic and microscopic analysis. On the basis of reading a large number of domestic and foreign literature, we take the Agricultural Bank of China for example and study the course of development, internal and external conditions, the challenges of sustainable development, the ability of business to sustainable development. And make recommendations accordingly to find the best way to achieve a sustainable business.Contents of this paper is structured as follows: The first chapter is the introduction, detailing the background of peasant household small loan, after summarize the relevant literature data; The second chapter defines the basic concept of peasant household small loan and current existing theoretical basis; the third chapter describes the history of the peasant household small loan operations and experience given by peers; the fourth chapter delves into the peasant household small loan whether sustainable development capacity, respectively, from marketing services, loan guarantees, organization and management capacity, profitability and risk management capabilities are expanded; the fifth part make recommendations for the article discusses the problems of the bank’s business model,and explore the suitable model to provide a reference for practice.