The Constraint And Countermeasure On The Development Of Peasant Microfinance In China

The reform of the rural financial system is an effective means of increasing the peasants' incomes. It has a continuous influence on the peasants' income growth to reform the rural financial system and improve the financing conditions.In this article, author describes concepts and relevance theories of rural microcredit,and then made an in-depth analysis to the main factors restricting the development in microcredit of farmers in Yongzhou citiy Hunan province through studying questionnaires. Those the main factors restricting Include shortage of supplies of credit agencies which are caused by interest rate cap, high cost of loans, shortage of agency service network, difficulties of getting effective guarantee to farmers,cumbersome procedures, irregular operation, incomplete risk mechanism. By learning successful experience of other countries, author puts forward some feasible suggestion in order to promote positive development to local rural micro credit. Such as establishing multivariate pattern of rural financing, Improve the system of interest rate, increasing government support, increasing framer's income to reduce needs of guarantee, simplifying financing process, improving financing procedure,trying new Repay,Perfect incentive mechanism methods.