I. Current situation of microfinance business development
Since the pilot project of "Poverty Alleviation Society" in Yixian County of Agricultural Development Institute of China Academy of Social Sciences in 1993, China's microfinance business has experienced ups and downs for more than ten years. However, due to the imperfectness of the financial system, the immaturity of borrowers and other objective factors, up to now, the microfinance business has not achieved exciting practical achievements, and it is far from "developing an active and important emerging industry or department" like some successful developing countries. The development of micro-credit business in China is slow, which can't keep up with the pace of economic development and can't meet the financial needs of customers: < P > (1) The loan amount is too small. With the development of economy, the willingness and consciousness of urban and rural residents to start their own businesses are getting stronger and stronger, and the demand for funds is also growing. However, due to the limited amount of micro-credit business, it is usually unable to meet its capital needs. At present, the loan for laid-off workers offered by commercial banks is generally 2, yuan per person, and it is raised to 2,-5, yuan in some areas; Some rural credit cooperatives grant small credit loans to farmers with a limit of .5-5, yuan. Take the purchase and construction of a vegetable greenhouse by farmers as an example. According to the current market price in Linyi, it takes about 6,-8, yuan to build a vegetable greenhouse, plus about 2, yuan for labor wages, seeds and fertilizers. It takes 8,-1, yuan to invest from the construction of the greenhouse to the start of operation. If credit is granted according to the above limit, there is still a considerable funding gap. Therefore, the loan amount is too small to meet the actual needs of customers.
(2) The loan period is short. Agricultural projects have the characteristics of large investment, slow effect, high risk and long payback period, while the longest term of microfinance business is one year, and the longest term of laid-off and unemployed loans is only two years. Farmers and laid-off workers generally have no fixed income, which will easily lead to loans overdue, which not only increases the interest burden of borrowers, but also affects their enthusiasm for repayment. Moreover, it is not conducive to reflecting the authenticity of loan quality; It is not conducive to financial institutions to rationally arrange funds and improve the efficiency of fund use; It also affects the pertinence and effectiveness of financial decisions.
(3) The microfinance model is single. The development of microfinance in some areas has not been combined with agricultural industrialization. Because of the asymmetry of information, it is difficult for farmers who get micro-loans to sell their products, or they can't guard against market risks and natural disasters, so the use efficiency and economic benefits of micro-loans are greatly reduced.
(4) the construction of the credit system is lagging behind. In the past few years, due to the low level of electronic construction of financial institutions and the lack of historical credit records, the credit investigation only relied on the loan officer's partial understanding of customers, which inevitably led to false investigation and insufficient risk estimation. In addition, the financial ecological environment in some areas is relatively poor, and some customers have the idea of evading debts, so the quality of pre-loan investigation can be imagined.
(5) lack of sustainability. First, the will of local governments is not strong. At the end of 22, the People's Bank of China issued the Measures for the Administration of Small Guaranteed Loans for Laid-off Workers, which clearly stipulated the object, amount, term, guarantee and discount of small secured loans. However, due to the fact that this policy involves government-funded guarantees and partial interest subsidies, coupled with the small amount, local governments are not enthusiastic in the implementation process. Second, because agriculture is affected by natural climate factors and market factors, there are great risks, especially in industries such as breeding and planting, which are often wiped out by natural disasters or market turmoil. In addition, due to the small accumulation of farmers' funds and weak ability to resist risks, some credit funds are badly formed, and a large number of loans cannot be recovered, which has dampened the enthusiasm of financial institutions to issue small loans. Third, microfinance companies can't absorb public deposits, only rely on external capital injection, and lack sustainable sources of funds, which affects the development of microfinance.