Micro-credit and micro-credit insurance problems in the development of
first, the profitability problem. Judging from the rural credit cooperatives, high cost of small loans, the recovery, and the benchmark interest rates set by the State, not allowed to free float, so gains little, leading to Bank are not enthusiastic. Contact the overseas cases, Albania and Ukraine, micro-credit market interest rates, and generally higher than the loan rate, even higher than interest rates on small business loans because their administrative costs are higher than large loans. Very low returns on assets of rural microfinance in China, the best items would gain only 7%-9%, well below international standards, return on assets and Government-led microfinance is only 2%, brought the author as a commercial bank, in pursuit of profit, and microfinance loans is similar to the policy of poverty alleviation, the main objective is poverty reduction, the profits were ranked in second place.
Second, the issue of business. Now credit unions each network only a few loan officers, and other credit institutions are less, according to China's present operations of micro-credit to farmers, loan officers need to every household rating, even security loans, also need to be assessed on each team, each loan officer workload is very high. Short is one of the big issues facing credit unions and other credit institutions. Employee quality also affects the efficiency of loans. In addition, credit unions are generally linked to the targeted allowances and loan quality, loan officers out of self-preservation, no lending activity, easy to have a terrible credit. Excessive stresses the responsibility of existing assessment methods and ignore the incentives side.
third, the loan problem. In China, the loan should be based on a farmer's production cycle determines the term of the loan, but in some areas the lack of strain, regardless of how a business project, in General, the term in less than a year. Various periods of crop growth cycles, forest 2-3-year, fish farming is divided into seasons. This short-term loan terms increased the difficulty farmers ' payments, increased incidence of bad debts.
part IV, line problems. Small agricultural loans one of the features is that a "small". But to tackle the "subsistence" effective and to promote "development" fatigue.