The Farmers’ Credit Rating Module Design And Application Of Hunan Rural Credit Cooperatives

At present， China’s rural financial development has lagged behind， whichseriously affects the development of the rural economy. Although the farmers arefacing a difficult situation of getting loans，the NPL ratio of rural financial institutionshas been high. This is related to our rural areas’ weak credit foundation. For a longtime, the lack of the accumulation of systematic and normative credit information andthe financing service system seriously affects the development of the rural economy.Therefore, the priority to further development of the rural finance is to establish aunified farmers’ credit evaluation system.Rural credit cooperatives’ farmer credit rating system is a subsystem of the creditmanagement system. Because whether one can be credited or not and the credit lineare based on the credit rating of the farmers, the credit rating system has an importantposition in the entire credit process. How to design credit rating system scientificallyand rationally and to ensure the operation of the system safely and efficiently is ofgreat significance.This paper discusses the design and application of the Hunan Province RuralCredit Cooperatives farmers’ credit rating system. With the comparison of thedomestic and foreign existing credit rating model, we finally select a suitable modelfor farmers’ credit rating system. Then starting with the credit rating system’ basicprinciples, basic functions and its achievement as well as the basic condition of theHunan Rural Credit Cooperatives credit management system, we develop a convenientand suitable farmers’ credit rating system for Rural Credit Cooperatives. As with thetest and operation, the system not only realizes the need of farmers’ credit rating， butalso lets the loan officer making decision faster and more accurate. The design andaccomplishment of the farmers’ credit rating system can further standardize the creditbusiness management behavior, prevent and control the credit risk and improve theasset quality of agriculture loans.