Research On The Problem Of Private Lending In Loudi

The developments of economy and urbanization make farmers’ income increase.Meanwhile,the production and living cost increase,too.Farmers’ financial needs become more diverse,thus the rural private lending flourishes.As is known to all,farmers play a very important role in the rural financial loan market.Thus,farmers,as investigated objects,conduct the research to the borrowing behavior of rural households.It is of great significance to analysis the farmers borrowing needs,to understand farmers’ financial environment and to promote the rural economic development.By sending survey questionnaires as the way to obtain data in Loudi,the paper analyses the situation of rural folk loan,the characteristic of rural folk loan from 2016-2018 and the factors influencing farmers loan behavior.These factors include the farmer’s age,job,salary,child who is in college and family member who has great disease.The bank’s interest rate and farmers’,satisfaction degree for the bank’s service also influence the farmers loan behavior.Thus the results are as follows:Firstly,in the past 3years,the great needs for money in rural places in Loudi expand rapidly,as well as the lending channels.It plays an increasingly important role in rural financial system.Secondly,Loudi farmers,private loan mainly comes from three ways:working,commerce and local industries.The amount of loans is concentrated in the range of 5000-10000 Yuan.The interest rate of borrowing is stable in the range of interest-free and low interest rates.The main purpose of borrowing is mainly for building houses,buying houses,schooling for children and expenditure on major illnesses.The main mode of borrowing is verbal agreement,and the degree of standardization needs to be improved.However,with the improvement of farmers’ overall education and legal awareness,the proportion of load receipts and guarantors in farmers’ private loan has increased.The main source of repayment is on schedule,and the source of repayment is basically the same as the source of income,but the situation of farmers’ incoming is not optimistic.Thirdly,Through the Logistic model,it is concluded that the occupation of the head of the household,education level,schooling of the children,expenditure on serious illness and the average annual surplus money of the family are the significant factors affecting the private loaning behavior of the famers.Among them,there is a reverse relationship between family net surplus money and farmers’ loaning behavior;there is a positive relationship between family expenditure on serious illness,children schooling,household head’s educational level and farmers’ loaning behavior;the loaning probability of pure farmers is higher than that of non-agricultural and part-time farmers.Through the analysis of the above farmers’,loan behavior,on the premise of optimizing the farmers’ loan behavior and aiming at improving the satisfaction rate of farmers’ loan demand,the following suggestions are putting forward:the government should establish a rural social security system to alleviate farmers’ loan demand on living expenses,and should strengthen the legislation of private loan and guide the private loan;the bank should improve the service,reduce the loan process,and strengthen the propaganda of formal loan channels;Farmers should gain more knowledge,improve financial legal concept and cooperate with other farmers to get the money.