Guideline on Rural Credit Cooperative Rural Household Solidarity Lending


(enacted in 2000)

The guideline increases delivery of microcredit to farmers in the form of solidarity lending. Farmers form voluntarily groups to borrow without collateral from rural credit cooperatives. These loans are supposed to be used in plantation, aquaculture or individual business. Each member should deposit 1% amount of the loan into the mutual aid money. Interest rate preference is determined by cooperatives.

This guideline is in several chapters:

Chapter I General Provisions

Chapter II Borrowers Qualification and Functions of Loans

Chapter III Management of Loans

Chapter IV Interest Rate

Chapter V Supplementary Provisions