From The Washington PostBy Cornel Ban and Kevin GallagherDecember 17, 2014 Cornel Ban...
Procedure Governing Rural Household Loans(Draft)
The procedure regulate small rural banking institutions loans to rural household for agriculture production and living purpose. It includes credit loans without collateral as one method for farmers get loans, which in practice is microcredit from rural credit cooperatives.
It regulates that loans are issued in the unit of family, and household credit should be recorded in their profile. Pro-loan investigation of income, settlement of repayment, credit assessment system and credit records are required. The procedure sets rules about loans categories, time period, interest rate, repayment, post-loan control and risk management.
The procedures are organized in nine chapters.
Chapter I General Provisions
Chapter II Managerial Institutions and Policy
Chapter III Qualification of Loans
Chapter IV Acceptance of Application and Investigation
Chapter V Examine and Approve
Chapter VI Loan and Repayment
Chapter VII Post-loan Management
Chapter VIII Encouragement and Restrictions
Chapter IX Supplementary Provisions