Research On Loan Problems Of Small Guarantee Policy Of Luoyang City

The Chinese government currently engages to solve the employment social problems, and help the vulnerable unemployed; hence, the government implemented a policy of small loans policy to provide credit supports for policy entrepreneurship. The policy of small loans has been carrying out into practice for years, which indeed has played a positive role in the employment rate and the promotion of social stability. However, during the process of this policy running, subject to coordination difficulties, the imperfect guarantee fund mechanism, and higher requirements of counter-guarantee threshold, its policies, the policy was exposed to the bad influence of policy and social role. Therefore, we should systematically analyze the small loans policy’s status quo policy, the background, and running problem and identify the cause of problems, so as to find a set of effective measures recognized by different parties of relevant aspects.This study concentrates on Luoyang small loans policy issues and the reasons for their existence. First, the paper describes the importance of Luoyang small loans policies and current development process and running statement. Secondly, we analyses the problems of Luoyang small loan policy, including: the bad coordination of various departments, rooted in the lack of a unified lead department; no guarantee fund mechanism for normal growth; and low individual consciousness and enthusiasm of repayment. Finally, a further advance in Luoyang small loans policy is recommended in order to protect the lasting operation of small loans policy. In addition, we propose improving the coordination of various departments, the construction of small loans system; the establishment of a guarantee fund growth mechanism and guarantee capacity; the strengthening cooperation with financial institutions, enhancing guarantee results; and the strengthening construction of credit system and other relevant measures. With these measures we hope to promote the employment and re-employment condition of Luoyang, and effectively alleviate the employment pressure.