It was learned from People’s Bank of China Chenzhou Central Branch that 345million yuan micro-credits were issued to registered poverty stricken families by the banking and financial institutions of Chenzhou city in 2015, accounting for 128% of the annual task preset by Hunan province.

Micro-credit for poverty alleviation is a kind of credit without mortgage and guarantee, which is handled out financial institutions with guidance of People’s Bank of China and especially used for the registered rural poverty stricken families. All the qualified rural families are capable to be issued with 20,000yuan- 50,000yuan loans based on their ID card and “loan note”.

Chenzhou city established a leadership group which was led by People’s Bank of China Chenzhou Central Branch and Chenzhou Poverty Alleviation Office to handle the micro-credit for poverty alleviation in 2015 together with Chenzhou Finance Bureau, Chenzhou Banking Bureau, and relative banks. The work was enrolled into the list of top ten accurate poverty alleviation work and “five-year plan for Chenzhou city’s accurate poverty alleviation (2015-2019)”.

In order to make sure the accurate docking between the micro-credit and registered poverty stricken family, Chenzhou city set up a joint service platform of county-town-village level, which ensured that the rural families can settle all procedures in their village. At the meantime, venture capital funds for the micro-credit were set up by the counties and districts, which helped to share the risks undertaken by banks on the credit. The families which paid off the loans on time can be favored with full interest subsidies. The towns and villages whose maturing loans recovery rate are 98% or over can be rewarded with 2% of the total volume of loans. Till the end of 2015, 29million yuan risk compensation funds were paid-in, accounting for 87.87% of the total.

On the practice of promotion of micro-credit for poverty alleviation, three supporting models have been explored by the banks and departments of Chenzhou city on the basis of the practical condition of rural areas and registered poverty stricken people. Dadong village, Oujiang town, Guidong county was credited with 12million yuan loans via “self-entrepreneurship mode” by working together with Guidong Rural Commercial Bank. Over 4600mu Chinese yew and some other precious seedlings were cultivated with the assistance of the loans, which helped to obtain 5.11million yuan net income for the village, accounting for 42,000yuan net income/family. Dongcun village and Baigou village of Nuanshui town, Rucheng county were credited with 6million yuan loans via “entrusted development mode” by working together with Rucheng Rural Commercial Bank. All the loans were entrusted to Rucheng Songxi Industrial Development Co., Ltd. on the construction of 3000mu green tea farm. They can be favored with fixed profit of 7% of the entrusted loans and can work in the farm as well. On this point, each family can get 15,000yuan net income/year. The poverty stricken people of 8 villages of 7 towns of Yizhang county were credited with 10.50million yuan loans via “joint stock partnership mode”. They bought the shares of Yizhang Goose Feeding Co., Ltd. with the loans, so that they can be favored with the profits of company and can work in the company as well. On this point, each family can get 20,000yuan net income/year.

Till the end of 2015, 129,800 poverty stricken people were registered in Chenzhou city, 126,400 ones got the credit rating, 96,700 ones obtained bank credit, and 2.368billion yuan credit were issued to them accordingly. According to the statistic, the poverty incidence was declined to 9.9%, down 2.8%.