Credit Market and Microcredit Services in Rural China

  title={Credit Market and Microcredit Services in Rural China},
  author={Mohamad D. Revindo and Christopher Gan},
Gap in credit access to rural poor population in China exists because rural households, especially farmers, are constrained to access credit from formal Rural Financial Institutions (RFIs). The risky nature of agriculture business and the absence of land ownership due to China’s village-based communal land-tenure system hinder the farmers from accessing formal credit requiring collateral and force them to resort to informal borrowings that charge exorbitant interest rates. The subsidisedloan… CONTINUE READING