Research On Innovative Design Of Small Credit Products In Rural Credit Cooperatives

Rural Credit Cooperatives are banking financial institutions with legal personality, which have full authority of management, practice independent accounting, and take full responsibility for its own profits and losses. Since it was founded more than 60 years ago, the Rural Credit Cooperatives are main banking financial institutions servicing "agriculture, countryside and farmers" and supporting for county economy development in rural financial market.For a long time, the Rural Credit Cooperative’s development lagged far behind other banks due to imperfections of the policy, regulatory and management, so that the rural credit cooperative only services "agriculture, countryside and farmers" by means of the lack of means and a single credit products in an increasingly competitive market environment. With the acceleration of the national urbanization strategy, the Rural Banks and Agricultural Bank of China agriculture division return to layout of the rural financial markets, which exacerbate the rural financial market competition pattern. However, low returns, great risk, lack of customer information and management irregularities are still the characteristic of the rural market economy. The large numbers of small and micro businesses in rural areas can’t meet the loan conditions of traditional banks, so they have not change the present situation because of increasing competition in the rural financial markets.To solve the financing difficulties problem of small and micro businesses, we did some research and analysis about the microfinance market, and chose the Rural Credit Cooperative’s micro lending business. Under the premise of considering the factor of the market requirement, target, product structure and product pricing, we design innovatively personalized micro loan products and differentiated products and services in Rural Credit Cooperatives, which can meet the different small and micro business’s needs. At the same time, investigation and SWOT analysis about the case analysis of W city’s Rural Credit Cooperatives are studied. According to the characteristics of micro-enterprise management, business processes are included from consultation to receive, investigate and review, approval, loan administration, servicing, poor relief, risk control and analysis, we designed innovatively for small and micro-enterprise bank credit product. So it can enhance the core competitiveness of Rural Credit Cooperatives, and break the majority financing problems of small and micro businesses.This paper designs innovatively the Rural Credit Cooperatives microfinance product types and business processes, which mainly deal with three aspects:the first is the rich rural credit products to enhance industry competitiveness; the second is through a credit product innovation design, formatting the standardization, operational, simple and efficient operational processes and reducing barriers, which can ease the financing of small and micro businesses; the third is the establishment of microfinance risk prevention and control system, reducing the probability of default and loss given default rate of rural credit cooperatives microfinance products, which ensure the sustainable development of microfinance products. On the basis of easing the financing difficulties of small and micro business, the theoretical construction of bank can give supplement and improve for some credit products. For other Rural Credit Cooperatives, microfinance conduct business in microfinance product design can be played a reference.