East China’s Jiangsu province has released a guideline on the promotion of the healthy development of small loan companies in a bid to better serve the brick-and-mortar economy, according to a press release held Thursday by the provincial office of finance. 15 measures are included in the guideline concerning the support policies, market access and regulatory management and other relates aspects. Small loan companies should insist on providing services for the brick-and-mortar economy, the guideline said. They are also encouraged to implement differentiated interest rates, giving priority to low interest rate loans for high quality customers. The guideline supports the relaxation of the entry threshold of the small loan industry, and encourages qualified legal enterprise in the country to initiate or participate in the establishment of small loan firms.
Small loan companies are also encouraged to give shareholding rights to the management, set up branches and launch investment projects within the provincial boundary.
As of the end of October, Jiangsu had registered 521 small loan companies of varied sizes and types with the paid-in capital totaling 65.96 billion yuan and the cumulative issuance of loans hitting 991.7 billion yuan against a loan balance of 75.357 billion yuan. The loans provided by the small loan firms have supported the development of 180,000 productive farmers, small and micro enterprises, and scientific and technological innovation enterprises.
