Study On Loan Management Of A Microfinance Company,Lan Zhou A

In China,"Dual Economy"exists in large cities and rural villages,Easter and Western areas,as well as both industrial and agricultural fields.Due to the shortage of financial organization,fin ancial services and financial products,small and micro businesses,privately-owned business,and farmers in most of counties and western areas have very limited developme nt space,with some of which in a very difficult situation,resulting county economy in an even le ss developed level.However,on the other side,since the reform and open policy in 1978,nationa 1 economy grows very fast and tremendous capital accumulates in some regions.There are lots of idle funds cannot find good channels to invest due to the limitation of national policies in financi al sector,thus those funds engage to illegal lending business,such as usurious loan and undergro und banks.In abroad,the development of microfinance industry is much more mature,therefore,experiences in microfinance industry in foreign countries can be introduced to China as a referen ce of guiding and regulating private funds and microfinance investment companies should be all owed to be established by legal entity or nature person,which will be served to the rural areas for microfinance purpose,thus promoting the development of county economy,solving "issues conc erning agriculture,countryside and farmers" and financing difficulty to micro-small-enterprises.Under the demands of the finance,microfinance should be supported by local governments w ith policies introduced immediately.Based on the above-mentioned reasons,a microfinance company,Lan Zhou A,was established.However,A faced a s erious problem regarding an effective loan management mechanism.This paper will analyze the 1 oan management issues A faces,introduce loan management strategy and set up corresponding m anagement system suitable to A company,providing a theoretical guidance for A.