An Empirical Analysis On The Peasant Household Micro-finance

China is a large agricultural country,and the "three rural" issue has been the focus of government and the public for a long time. The key of solution for the "three rural" issue is to increase the income of peasant. However, due to the lack of credit funds in rural development, the shortage of funds restrict the vast number of peasants to increase income, that is, there existence the farmer's "loans hard" problems. In order to meet the requirements of the further development of the rural economy, it is urgent to carry rural financial innovation to change the status of shortage of funds in rural. Many successful cases at home and abroad have shown that micro-finance as a credit to financial innovation and poverty reduction product in combination with household items, played an important role in the process to help farmers shake off poverty. The scientific operating mechanism makes it possible to meet the direction of China's rural financial innovation, and it is of great practical significance in the followings as, guiding capital flow into rural areas, developing the rural economy, increasing peasant income, and improving the efficiency of rural credit cooperatives.At the end of 2001, the debut of "the peasant household micro-credit loans in rural credit cooperatives management guidance" by People's Bank of China, means that the rural credit cooperatives as a formal financial institution began to develop the peasant household micro-finance in a comprehensive way. Based on the case of Jiangxi Province, this paper uses the combination of qualitative and quantitative, case studies and econometric analysis method etc, to study the peasant household micro-finance empirically. Through the evaluation of peasant household micro-finance impact on the performance of rural credit cooperatives, we find that the scale of micro-finance of rural credit cooperatives has expanded each year, and it is a high quality loan which both have a small bad low ratio and interest collection ratio, so it makes great contribution on the decline of the credit risk and improves the quality of loans for rural credit cooperative. Through the analysis of the effect of increasing farmers'income, we find that peasant household micro-finance largely affects the whole household income, especially in non-farm business income, and positively correlated with both. Finally, some problems as interest rate pricing, asymmetric information and management issues have been analyzed, and the corresponding proposals to the development of the rural economy have been put forward, which way play some part in the development of rural economy.