Analysis On The Factors Affecting Farmers' Loan In Rural Commercial Bank

China is building a new socialist countryside in recent years,and the issue of agriculture,farmer and rural area is playing a crucial role in the national economic development.Farmers are the small but essential part in the chain of rural financial trading and are the important driving force of rural economic development in the issue of agriculture,farmer and rural area.Nowadays the government proposes the inclusive finance policy.One of the key factors influencing farmers' welfare level is rural household credit.Studying and understanding household loan and its influencing factors not only help to improve the efficiency of rural household loan,but also help financial institutions to carry out rural household loan business.This paper utilizes 7152 farmers' credit data in the YZ branch of Ningde Rural Commercial Bank from January 2012 to June 2017.It analyzes the factors affecting farmers' loans from three perspectives:farmer characteristics,loan characteristics and external environment.One contribution of this paper is to study farmers' credit availability both from rural financing supply and from farmers' credit demand.The other contribution is to ensure the realness and exactness of sample data collected from bank credit database.First,the paper uses Logit model to analyze the potential factors affecting farmers' credit availability.It is shown that farmers' credit availability is influenced by farmers' age,education,daily deposit in the previous year,loan term,interest rate offered by bank and credit lines,but is not related with farmers' marital status,loan type,direction of loan investment,guarantee type and folk credit interest rate.In particular,younger farmers,more educated farmers,farmers with higher daily deposit,loans with shorter terms,loans with lower interest rate and higher credit lines lead to higher probability of getting loans.Second,the paper utilizes multivariate linear regression model and find that the loan amount obtained by farmers is related with farmers' age,education,marital status,daily deposit in the previous year,loan type,loan term,bank interest rate and credit lines,but is unrelated with direction of loan investment,guarantee type and folk credit interest rate.In particular,elder farmers,married farmers,farmers with higher daily deposit,loans with special purposes,loans with longer terms,loans with higher interest rate and higher credit lines lead to more credit amount.Based on regression results and related literature,this paper proposes related policies and suggestions to farmers,formal financial institutions including banks and regulatory departments so as to increase farmers'credit availability and improve rural credit mechanism.