Research On The Problem Of Small Loans For Rural Households In Lucheng District, Luohe City

In order to realize the development of agriculture,we must rely on a large amount of funds.Peasant household microfinance has long been neglected by mainstream banks,but this kind of loan is very important for peasant household’s business activities.The most notable problems of agricultural financing in China are high financing risk,low income and high financing cost.More than half of the peasant households received financial support from formal financial institutions reflect that the amount they receive is far from meeting their needs.Thus peasant household loan has become an important financial innovation way to provide fair and effective financial services for rural enterprises.In order to solve the problem of "difficult loans,difficult loans" of farmers,improve the quality of the use of peasant household’s loan and recovery rate of bank loan,and then achieve the goal of poverty alleviation policy.This study mainly investigates the basic environment of the development of peasant household microfinance in Yancheng District,including the basic situation of agriculture,the basic situation of micro-credit of the Agricultural Bank of China,and the credit needs of peasant households in Yancheng District through questionnaires and interviews,and puts forward a series of suggestions to solve the problems of peasant household‘s loan in Yancheng District.The main results of this study are as follows:1.At present,the credit limit of micro-credit is set at less than 50,000 yuan.Most of the peasant household’s loan of Yancheng District are between 30,000 yuan and 50,000 yuan.The willingness amount of farmers to lend is between 30,000 yuan and 100,000 yuan,while the expectation of new-type farmers is between 100,000 yuan and 200,000 yuan.The mismatch between supply and demand makes farmers’ production demand unsustainable.2.In order to obtain "policy dividend" and achieve the goal of financial sustainabilitya set of credit screening criteria implemented by rural financial lending institutions with the attributes of both policy and commercial behavior are contrary to the original intention of the policy and hinder the construction of credit relationship between peasant households and financial institutions.3.Increasing the credit supply alone cannot completely solve the non-sustainable development obstacles caused by the lack of professional production knowledge,the weak ability to resist risks and the inertia of peasant households themselves.We should formulate a more suitable financial supply for peasant households and improve their judgment ability.This study analyzed the problems from three aspects: the government level,the bank level and the level of peasant households themselves,and put forward a set of strategies to solve the development of micro-credit in Yancheng District.There are several measurements that can be taken by the government,the banks and the peasant households.The government can strengthen policy support and propaganda guidance,establish information platform,improve the guarantee system,support academic education,increase skills training and strengthen social supervision.The banks can use a flexible,reasonable method to determine the loan duration,enrich loan varieties,improve the ability of creditors and their risk management level.As for peasant households,they need to change their minds and use their initiative.