Jack Ma trench 1 trillion to help rural financial credit!

How difficult is it for farmers to get loans? Bank loans to agriculture account for only 20% of the total, but among the 1.3 billion Chinese, there are more than 900 million farmers. This seriously disproportionate figure may be telling. According to a survey conducted by the Chinese Academy of Social Sciences, 56.8% of the people in rural areas are short of funds, and as many as 70% of them think that it is difficult to obtain loans in rural areas. So far, the rural financial gap has exceeded 3 trillion yuan, and the severe reality hinders the economic and social development of China's rural areas.

1083 counties across the country have set up village banks, with a coverage rate of 57.6%, but why is it still so difficult for farmers to make loans? Because the threshold for bank loans is high, it depends on qualifications and mortgages, while farmers are often "inferior customers" in the eyes of banks, with meagre income and lack of collateral.

This dilemma is expected to change recently!

On December 20, Jack Ma announced that he would invest in Zhonghe Nongxin, a rural microfinance company, and set up a joint venture with China Insurance, "Farmers Union Zhongxin Science and Technology Co., Ltd." to comprehensively open the rural financial strategy.

Zhonghe Nongxin Project Management Co., Ltd., established by the China Poverty Alleviation Foundation at the end of 2008, is responsible for the management and implementation of wholly-owned organizations, focusing on the management and expansion of microfinance poverty alleviation projects. The company is committed to providing mortgage-free microcredit to the rural poor who cannot obtain loan support from formal financial services to commercial financial institutions, and is committed to helping poor and vulnerable groups improve their self-reliance and stabilize their way out of poverty. As of November, Zhonghe Agricultural Credit had lent a total of 18.4 billion yuan to help 3 million poor households obtain funds.

After taking a stake in Zhonghe Nongxin, Jack Ma will become the second largest shareholder after the China Poverty Alleviation Foundation. It will also greatly reduce Zhonghe Nongxin's loan costs and speed up universal benefits. Because before Ma Yun bought a stake, it was funded by bank loans, which cost as much as 12%, while the cost of funds from Jack Ma will be much lower.

Not only that, Jack Ma also said that in the next three years, it will unite 100 leading enterprises to provide financial services for large farmers; together with partners, it will provide comprehensive financial services for 1000 counties, including payment, credit, insurance, etc.; to all domestic "three rural" users, pull partners and social forces to provide a total of 1 trillion credit!

In the exploration of rural finance, Jack Ma has never stopped, and has achieved little success. Ant Financial Services Group has successively launched Wangnong loan, accurate poverty alleviation, supply chain finance and other business practices, and formed three major business models to meet the pyramid financial service needs of different "agriculture, rural areas and farmers" users. According to official data, as of mid-December 2016, the number of agriculture-related users served by Ant Financial Services Group in the areas of payment, insurance and credit reached 150 million, 130 million and 33 million respectively.

Ma Yun's move is not only to respond to the state's call for "accurate poverty alleviation", but also to promote business development. So far, rural Taobao has covered nearly 18000 village sites in more than 300 counties in 29 provinces, and 75% of the partners in rural Taobao are entrepreneurs returning home. The activity of rural finance will undoubtedly provide his "rural e-commerce" market with the strongest support and the strongest driving force!