Problems and Countermeasures of Rural Micro-credit

Micro-credit pushed by the rural financial institutions play a significant role in supporting the economic development and solving the three issues concerning agriculture, countryside and farmers. Pointing at the outstanding issues current micro-credit confront such as the inability to meet the strong demand for the loans from rural areas, slow cash flows and difficulty vulnerable farmers faced in application, this essay makes deep analyses in the reasons and put forward countermeasures to break the dilemma. There are four ways: accelerating the construction of rural financial institutions and outlets; lowering the threshold while improving the efficiency of loaning; perfecting rural credit legal system with reduced risks; expediting management mechanism innovation when focusing on the rural capital contradiction of supply and demand.