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