"Rural Financial Autonomy" solves the problem of difficult loan and expensive loan

How to solve the problem of insufficient supply of basic financial services in rural areas, difficult loans and expensive loans

Zhejiang explores the way of "Rural Financial Autonomy"

The loan is convenient, the quota is increased, and the farmers are more trustworthy.

Taotou Village, located in Huaguman Island, Sanmen County, Taizhou City, is surrounded by the sea on three sides. It is near the beginning of winter, the sun here is still warm.

There are more than 450 households in the village, most of them are engaged in mariculture. Next to the village is the fish pond of the villagers' families. The water sparkles in the sun, and egrets pass by from time to time.

The fish pond of villager Chen Huafa is also here. Lao Chen, who is 50 years old this year, contracted a 30-acre fish pond for mixed culture. There are not only green crabs and blood clams in the pond, but also small white shrimps and razor clams.

In previous years, Chen Huafa contracted only 16 or 17 mu of fish ponds. We can see that the situation of aquatic products has been good in recent years. This year, the scale has been expanded and the rent has also been high. "the year before last, one mu of pond cost only 2800 yuan a year, but this year it has risen to nearly 5000 yuan," says Lao Chen.

Coupled with the costs of seedlings, bait, fertilizer and water, the investment of more than 400,000 yuan made it difficult for Lao Chen to lend money to the bank for the first time in his life.

"Why didn't you get a loan before?" "at that time, I thought the procedures must be very troublesome. I don't have any acquaintances in the bank, and I don't have anything to bet on. I can get a loan if I want to. If you are in urgent need of money, you should borrow it from your relatives and friends. "

Then why did you take out the loan this year? "it's convenient. If you want to get a loan, you can find the 'village head'."

Instead of looking for a loan to the president, look for the "village head". This change stems from the pilot model of "rural financial autonomy" carried out by the Agricultural Bank of China in Zhejiang.

Lin Xiaokui, director of Taotou Village, said frankly, "Last year, our village was rated as a 'rural financial autonomous village' by the Agricultural Bank, giving us a credit line of 35 million yuan. When the villagers have a need for a loan, as long as they find five co-insured villagers in the village, and then examined and announced by the 'two village committees' and approved by the Agricultural Bank of China, they can get the loan, and the process is very simple. "

According to this model, Chen Huafa borrowed 200000 yuan. In the village, like Lao Chen, nearly 200 households received loans, with the lowest quota of 50, 000 yuan and the highest amount of 300000 yuan.

Lin Xiaocai said that compared with the previous micro-loans, the loans under the "rural financial autonomy" model have not only convenient procedures, larger quota, but also more favorable interest rates, with a monthly interest rate of 6.5% per day. Moreover, considering that the money used by farmers is seasonal and temporary, after a credit grant, the villagers can borrow and return with the self-help equipment set up by the Agricultural Bank of China in the village, without interest, which is equivalent to a large amount of living money in the hands of the villagers.

Since he borrowed money from the bank, Chen Huafa got up at 4 or 5 o'clock every day to go to the fish pond, feed, clear the pond, and set the net. "now I have to pay more attention than in the past. If I delay repaying the bank loan, it will not only affect my own credit."

The "two village committees" have become a bridge between farmers and banks, aiming to solve the "five difficulties" of farmers' loans.

For a long time, the difficulty and high cost of loans have limited farmers' right to enjoy financial services. Mao Jiangfeng, deputy director of Taizhou Banking Supervision Bureau, believes that on the one hand, this is due to insufficient supply of rural finance, on the other hand, it is also due to serious information asymmetry between banks and farmers.

Feng Jianlong, president of Zhejiang Branch of Agricultural Bank of China, said that it is precisely because of the information asymmetry that banks have "five difficulties" in making loans to farmers: difficult to choose for loanable farmers, difficult to set lending quota, difficult to manage the use of loans, difficult to reduce management costs, and difficult to control bank risks.

How to solve the "five difficulties"? Feng Jianlong said, "in the exploration of long-term service for agriculture, rural areas and farmers, Agricultural Bank of China has found that the two committees of villages and villages are the most suitable bridge between farmers and banks." Because it has been rooted among the villagers for a long time, the "two village committees" know best about the character and credit of the villagers, can best manage and control the real rights in rural areas, most hope that the villagers will become rich, can best identify the loan risks of farmers, and can best help banks to resolve the loan risks of farmers.

From the "five most" of the "two village committees", in the second half of 2013, Agricultural Bank of China began to pilot the model of rural financial autonomy. Feng Jianlong said that the core of rural financial autonomy is the "six self" process. "customer recommendation", farmers put forward the loan demand to the "two village committees", and through the "village two committees" publicly selected honest farmers to recommend to the Agricultural Bank; "guarantee self-organization", farmers provide guarantors approved by the "two village committees"; "loan autonomy". After the loan has been examined and signed by the Agricultural Bank of China, farmers can obtain loans at any time through channels such as Huinongtong within the quota and time limit. "self-discipline in the use of funds", villagers carry out self-management, self-restraint and self-supervision of loans to ensure that loans are used for legitimate production, operation and living consumption; "self-service" means that farmers can handle loans through Huinongtong machines and tools if they are not enough to leave the village. According to "trustworthy self-encouragement", the preferential credit line and interest rate preferential range provided by Agricultural Bank of China to each village and each peasant household are directly linked to their respective financial autonomy, and the better the autonomy, the more preferential treatment they will get.

In view of the frequent occurrence of the risk of loan guarantee chain, some people have proposed that the rural financial autonomy with villagers' autonomy and farmers'co-insurance as the core will repeat the same mistake. If the cohesion of some village-level organizations is not strong, will it lead to the abuse of financial power and moral hazard?

Jin Yueqiang, president of the Taizhou Branch of the Agricultural Bank of China, said that rural financial autonomy has made detailed plans in terms of the line of credit, the selection of pilot villages, and serving farmers to guard against risks. In terms of credit line, rural financial autonomy carries out total control, which is generally less than 100000 yuan per household and no more than 300000 yuan according to the scale of operation. According to the calculation and pilot situation, farmers have the ability to repay, which will not lead to the risk of guarantee chain. When choosing the pilot village of financial autonomy, we should pay attention to whether the village autonomy structure is legal and perfect, and whether the credibility and centripetal force of the "two village committees" are strong. In addition, the villagers' credit and other information are included in the scope of credit evaluation.

Lin Xiaocai said that after the village committee posted a loan notice in the village in February this year, nearly 300 households expressed their willingness to lend. "the village has laid down a principle that only farmers are subsidized, and those who want to take out loans to run enterprises and do business firmly refuse to approve them." Seeing the attitude of the "two village committees", dozens of households withdrew their applications. After careful consideration of the villagers' loan applications, the "two village committees" rejected the applications of more than a dozen households.

It is understood that the pilot project of "rural financial autonomy" has been extended to 205 administrative villages in Zhejiang. By the end of September, the loan balance of these autonomous villages had reached 715 million yuan, benefiting 5858 peasant households, and no overdue had occurred.

It will help to solve the difficult problem of farmers' guarantee, promote the construction of rural credit system, and bring multiple benefits to rural areas.

The reporter investigated and learned that by promoting the model of rural financial autonomy, it not only facilitates farmers' loans, but also helps to solve the difficult problem of farmers' guarantee and promote the construction of rural credit system. In Lin Xiaokuai's view, through rural financial autonomy, the service capacity and economic autonomy of the "two village committees" have been enhanced, and the degree of trust among the villagers of the village committee has been enhanced.

In recent years, with the improvement of the level of urbanization, the awareness of rural residents to start a business and expand the scale of operation is gradually enhanced, and the demand for loan financing is becoming more and more urgent. However, the lack of effective mortgage guarantee is the bottleneck of the difficulty of farmers' loan. Feng Jianlong believes that by promoting the model of rural financial autonomy, transforming farmers' intangible assets in the village, such as human behavior, credit, personal ability, and family harmony, into social capital that can be financed, can effectively solve the problem of guarantee, reduce financing costs, and make farmers' loans more convenient and fast.

According to the "implementation Plan of Rural Financial Autonomy Model" issued by Zhejiang Branch of Agricultural Bank of China, the financial autonomous village is valid for three years, during which the Agricultural Bank gives the autonomous village preferential treatment to increase the loan line and reduce the loan interest rate according to the trustworthiness of farmers. If more than one person in the village is overdue or fails to repay the loan for more than three months, the preferential terms will be cancelled, and if the non-performing loan exceeds a certain amount, the exit mechanism will be activated. This makes the villagers realize that "credit is worth ten thousand dollars". Lin Xiaokai said, "now one person is the 'old scoundrel', and the whole village refuses to do so. Because the credit of a family will affect the credit rating of the whole village. "

However, rural financial autonomy has also encountered some difficulties in the process of implementation. Feng Jianlong said: in Yongkang, for example, there are more than 700 villages in the county, but the Agricultural Bank of China has only 18 physical outlets, more than 60 customer managers, limited manpower to serve so many villages, time, transportation and other costs are very high. As a breakthrough of inclusive finance, rural financial autonomy should not only enable farmers to get real benefits, but also enable banks to achieve business efficiency and guarantee loan repayment, so as to ensure sustainable development and protect the enthusiasm of financial institutions to serve agriculture, rural areas and farmers.