Rural Microfinance Development

The Study of micro-credit is for the purpose of solving the problem of lack of funds for famer. We all know that what is most wanting to farmer is capital in three elements of economic development,as labor, capital and technology. Technology and labor is difficult to fully playing a role,if it is lack of capital. The Study of the developing of micro-credit is to given a more reasonable policies and recommendations, throughing exploring the existing problem in the current mechanism.Four parts constitute this paper. The first part reviewes the basic theory of microfinance. First, microfinance is defined and classified; Then discusses the causes why the microcredit emerged,and the conditions of developing,and the role of microfinance. We can have a basic understanding of microfinance through the first chapter. The second part discusses the status and the existing problems of microfinance. These problems involve problems of the government and microfinance institutions and rural environment for microfinance. Finally, it pointed out that why exogenous microfinance is difficult to develop. The third part discusses the experience and the enlightenment of the microcredit in abroad. And analyzed several microfinance developing smoothly. The fourth part, the policies and suggestions are put forward for the microcredit. Firstiy statedthat the exogenous microcredit is bad, Then a series of policies and proposals are put forward,it includes the supporting policy of government,and perfecting laws and regulations, etc.