Analysis Of The Rural Household’s Borrowing And Loan Problem In Zhaodong City Of Heilongjiang Province

Our country is agricultural country since ancient times, still has more than600million farmers,issue concerning agriculture, countryside and farmers has become an important and difficultproblem of our country during the construction process of new socialist rural work. The solution tothe issue concerning agriculture, countryside, and farmers can promote the development of ruraleconomy and farmers’ production increment. By the development experience of domestic andabroad, the development of economy is dependent upon the financial support, however the fund ofrural financial market of our country shortage has become an important obstacle of the furtherdevelopment of rural economy and farmers to further improve the standard of living. Nowadayswith the continuous development of new socialist rural areas, the rural economy development is inthe rapid progress, so rural households have increasingly strong demand for capital. However, thephenomenon of rural household’s borrowing and loan difficult has always existed. Thisphenomenon to a certain extent also reflects some deficiencies of the rural financial system at thepresent stage in China.Zhaodong city of Heilongjiang Province was taken as the object of study, and a questionnairesurvey was carried on the visit to259farmers of4villages. Through data sorting, from ruralhousehold’s borrowing and loan, ways, purpose, time limit, interest, guarantee and so on severalaspects have been carried on the processing and analysis. First of all, the current situation ofZhaodong city rural household’s borrowing and loan behavior was analyzed, from the survey it wasfound that the Zhaodong city of Heilongjiang province rural household’s demand for funds wasstrong, and borrowing purposes tend to loan for living. Meanwhile, rural household in choosing away of borrowing, rural informal lending was still popular, while rural formal financial institutionsin the act of peasant household’s borrowing’s role was limited, which cannot well meet the demandof rural household’s borrowing. The reason for that is due to information asymmetry which cancause farmers to this way of borrowing a lack of understanding, and rural households have certainresistance. Secondly, some problems about the Zhaodong city rural households’ borrowing and loanbehavior were proposed, and the causes of these problems were analyzed. It is also found that theproblems were mainly existing in the rural informal lending and rural formal financial institutions,and these problems not only restrict the farmer credit behavior, also make the rural households’borrowing and loan difficult situation increasingly serious, which finally make the rural financialmarket and the development of rural economy suffer from a certain degree of restriction. Through the summary and analysis, it is found that the causes of these problems include the followingaspects: rural household factors, rural formal financial institutions, and rural informal lending. Therural household factors mainly include the factors such as age, culture degree, annual income; therural formal financial institutions aspects include rural formal financial institutions approved by theloan application, network Settings, internal factors such as regulation; and the rural informallending include credit, lending interest rates and the informal capital mutual aid organizations, etc.In addition, through the analysis of the United States, Japan, India and other foreign advanced ideasin the rural financial development and related system construction, with the Zhaodong city ofHeilongjiang Province current rural financial situation contrast analysis, problems of rural financeexisting in China were found out. Through reference to relevant experience, make it moreconducive to households’ borrowing and loan difficult problem to solve, so as to promote the rapiddevelopment of rural economy. Finally, based on the above analysis, some countermeasures andsuggestions were proposed for the improvement of the actual situation of rural households’borrowing and loan behavior in Zhaodong city of Heilongjiang Province.