Analyze On The Micro-finance Of Hainan Rural Credit Cooperatives

Agriculture is the main industries of Hainan province. In order to increase the income of peasants, they spent two years to study the suitable microfinance model. The new model is based on the patterns from Grameen microfinance, also takes into consideration the actual situation of Hainan, This loan pattern can be summarized into such a few words: set up institutions, professional team, special culture, special process and special products, special subsidies and special system, hire experts team;Handed the power of control the loan risk to the staff; Staff can determine their own income, Handed the approval rights to farmers. Loan interest rate is determined by the farmers. When the Loan amount is under 20000, the farmers can look for a team of five partners and training 5 to 7 days. Then, microfinance staff can not refuse to issue loans without any justified reason. On time payment people can enjoy more low interest rates. Using the above way, Hainan microcredit model reduces the risk, realize the sustainable development.More than five hundred college graduates working in rural credit cooperatives and doing microfinance business. The services have covered the entire province all the villages and towns. 688400 farmers have received a 21.158 billion loan. This model is becoming an important power to promote farmers’ income, promoting the adjustment of rural industrial structure, In Qiongzhong county, the farmers’ income, which comes from micro-finance, has reached 40% or more of total household income.This model of monitoring mechanisms, organizational structure, evaluation and reward and punishment system, hardware equipment and so on, the threshold is low, can be copied, can be promoted throughout the country. In order to ensure the smooth promotion of a small pass, one is to do a good job of propaganda, so that farmers understand the loan application procedures simple, so that microfinance institutions to understand microfinance can be profitable. Two is to adjust measures to local conditions, constant innovation, loan interest rates, the amount should be adapted to the local. The three is to support the development of agricultural insurance, reduce the risk of financial institutions and farmers. Four is to cooperate with the local organizations, five, the government should give appropriate policies to support, six, the entire loan model should be strengthened in the process of supervision.