Study On Borrowing Behavior Of Rural Households In Our Country

As a large agricultural country, the 3 dimension rural issues have a direct bearing on China country's construction and social development as a whole. The establishment of effective financial service for China's rural household is one of the keys factors to settle down the 3 dimensional rural issues. However, the scarcity of the rural financial service, which indicate that the existed financial service system for rural household can't meet the majority economic development in China's rural area.Why do rural household fall into a plight of"borrowing difficulty"? How to improve the rural financial system so that it can effectively serve the majority of rural household? The paper is based on the theory of rural household; it tries to research the issues referred above. According to the research needs, the paper define a clear object of study this paper, clear the study object, then describes a variety of financial organizations and forms in the current rural financial system in the view of the existed financial service system. Through the comprehensive analysis of the collected data ,study the borrowing behavior of rural household from lending source, use, incidence, amount, term of borrowing, interest, repayment and etc, then summarize the basic features of borrowing behavior.The constraints of borrowing behavior of rural household include internal and external factors to seek for a solution to the borrowing difficulty. To ease the difficulty, I try to propose some suggestion which is the focus of this paper. According to previous analysis of the constraints of borrowing behavior, here I will propose targeted measures from the farmers, government, and the existing financial institutions three aspects to resolve the problem. According to rural household lack of collateral or guarantee, I will propose the establishment of an effective collateral system which based on land ownership and this is the main innovation in the paper.