Investigation And Research On The Influencing Factors Of Credit Demand And Credit Behavior Of Poverty Alleviation Households

Since 2003,our government has attached importance to the work of the "three rural areas" for 20 consecutive years,and has always made solving the "three rural areas" issue the focus of attention in the "No.1" document.One of the major innovations in rural finance is the creation and development of rural microfinance,the main purpose of which is to provide services to the majority of low-income people in rural areas,granting them small credit loans to help them solve their financial needs and help them escape from poverty.The development of rural microfinance is a major contribution to the improvement of China’s rural financial market system,providing a great help for farmers to escape from poverty,helping to achieve sustainable development of the rural economy and contributing to the stability of rural society.Examining the demand for microcredit and the influencing factors of households who have escaped from poverty is of guidance and reference significance for financial institutions to give full play to their advantages and develop loan products according to local conditions;it is a reference effect for financial institutions to enhance their own credit supply service capacity,and it is a guide for the government to enhance its understanding of farmers’ needs and to formulate microcredit policies that effectively meet the credit needs of most farmers.This study mainly adopts a questionnaire survey to select some low-income out-of-poverty households as samples in national out-of-poverty counties in a total of eight provinces,including Chongqing,Sichuan,and Guizhou,with the aim of analyzing the credit needs and behaviors of out-of-poverty households.The survey focused on the personal characteristics,household characteristics,policy situation and credit situation of the poverty-removing households,and the factors affecting the credit demand and credit behavior of the poor households were analyzed using multiple regression analysis,and the results showed that.The credit demand of out-of-poverty farmers is more common.Most of the out-of-poverty farmers have credit demand and the credit demand amount is small,mainly because the production scale is small and considering their own repayment ability,most out-of-poverty farmers are very conservative in debt and generally do not easily take out loans.Even if they take out loans,the amount of credit demand is generally small.At the same time,the demand for credit from poor farmers is mainly short-and medium-term borrowing,because consumer spending such as building houses,children’s schooling and major medical expenses take up a relatively short period of time,which makes poor farmers more inclined to choose the short-and medium-term credit terms.The loans for farmers who have escaped from poverty are mainly for consumption purposes,supplemented by production purposes.To solve the shortage of funds and to meet the consumption purpose is the basic prerequisite for poverty-eradicated farmers to escape from poverty,because most of the borrowings for consumption purpose of poverty-eradicated farmers belong to human capital expenditures such as education and health,etc.Only by meeting these borrowing needs can we ensure the accumulation of human capital for poverty-eradicated farmers and provide them with continuous quality labor resources for their production activities.There are many factors influencing the credit needs of households that have escaped poverty.For example,the area of household farmland,household income and its stability,household production expenditure,assets,and knowledge of credit.The analysis shows that the larger the family’s farmland area is,the greater the possibility of obtaining credit,although the credit demand is relatively small;the lower the per capita income of the family,the greater the shortage of family funds,and the stability of income is difficult to get the corresponding guarantee,once the family faces a large amount of living expenses,it is easy to generate borrowing difficulties,making the demand for funds increased significantly;the poverty-eliminated households with stable sources of income have a lower demand for The higher the value of household fixed assets,the greater the possibility that the poor households can meet their own capital needs,and naturally they will maintain a smaller capital demand;the more the poor households know about the credit policy,the deeper their understanding of the financial poverty alleviation policy,the better they can recognize the policy,the more they can use the credit policy favorable to them,and the demand for loans will gradually The demand for loans will gradually increase.In terms of factors influencing the loan behavior of poverty-eliminated households,more cultivated land area,higher per capita household income and its stability,more household fixed assets,knowledge of credit policies,agricultural inputs,knowledge of mobile banking,and the setting of formal financial sites increase the likelihood of poverty-eliminated households to borrow through formal financial institutions.Based on the above research,this study proposes countermeasures from the perspectives of the government,financial institutions,and poor households.First,to improve the financial literacy of households out of poverty in an all-round way;second,to strengthen the construction of rural formal credit service system;third,to standardize the informal financial service system in areas out of poverty;fourth,to improve the rural insurance mortgage guarantee service system;and fifth,to increase the policy support for rural financial reform.It is expected that this study will be beneficial to improve the financial services involving households that have been lifted out of poverty.