A Research On The Situation Of Rural Microfinance In Chifeng City Of Inner Mongolia As An Example

The 2014 national NO.1 document pointed out that financial institutions should continue tostrengthen role that service to the "three rural". Microfinance is an important financial means to solveChina’s "three rural" issue, Microfinance is an innovative financial tool for poverty alleviation, and it is theway to solve the problem of shortage of funds has a vital role in rural areas. Microfinance has graduallyformed a relatively mature pro-poor financial model to solve the farmers in the lending process informationasymmetry and transaction costs in nearly two decades of development in China, but it still exist the creditrisk and management mechanisms aspects. Inner Mongolia Autonomous Region as the first microfinancepilot provinces, and Chifeng is the first city carry out microfinance business, exploring the currentdevelopment of microfinance and a summary of their experience of commercial microfinance in thecountry promotion of great practical significance. Microfinance Chifeng addition to the basic features withgeneral microfinance, it will also be affected by national identity, national identity influence of small loansto farmers for the realization of Inner Mongolia Autonomous Region Microcredit stable and lastingdevelopment is very important.To achieve the above purpose, this paper based on the summary of prior research and field researchanalysis of the current situation of the development of microfinance in Chifeng City; And analyzes thefactors that affect small loans,Analyzes the overall situation of microfinance, comparative analysis and theanalysis of the effect, comparative analysis of the Han ethnic minority farmers and farmer incomesmicrofinance its influence.the following conclusions:(1)The higher income level of farmers microcredit isthe main consumer groups;(2)30 to 40 years old people are the main loan group;(3)Arable land with thechanges as a inverted "U" type of microfinance;(4)Microfinance is an important source of householdloans;(5)small loans to minority farmers incomes greater promotion effect;(6) Microfinance is an effectiveway to promote farmers’ income. And found the following problems: market information asymmetry, loanmechanisms are inadequate; interest rate pricing mechanism is not flexible, grant and loan demand offarmers and rural credit cooperatives internal mechanisms suited to the problems.Based on these findings, this paper put forward the following policy advice: increasing small loans forlow-income and minority households efforts to promote farmers; improving the social security system inrural areas; and interest rate subsidies combined with a floating interest rate; improving the machanism ofthe loan and strive to cultivate a loan facility corresponds to regional economy; improving repaymentperiod coordination with local production cycle; strengthening the supervision mechanism of coinsurancegroup and strengthening of rural credit cooperatives staff training to improve the microfinance businessservice awareness.