Microfinance in Ningxia

By CnAgri Print

Microfinance is widely used in Ningxia by farmers whose access to banking and related services is limited because of high transaction costs.

Microfinance helps local farmers start small businesses, mostly stock farming, and alleviate poverty and reliance on aid, according to Long Zhipu, director of Ningxia Huimin Microfinance Company.

In 2011, the company has provided 7,686 rural households with loans ranging from 3,000 to 20,000 yuan. According to Long, 87.24 percent of the company's clients are women.

Long said women usually run the home in rural areas, and they make good plans for spending the money. The loans also improve the status of the women.

"Many of our clients are illiterate and can't write their names, so they use their fingerprint instead. There is no way they can obtain a loan from an ordinary bank," said Long. "So microfinance is called the 'bank for the poor'."

Source: Chinadaily.com.cn