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Small and Micro Enterprises Loans Launched by Jiangsu Exceed 50 Billion RMB
updated on:2018-10-12 11:57

According to the latest statistics, loans targeted at small and micro enterprises have achieved full coverage in the entire province. Jiangsu has also hit more than half of the mark it had set for government-bank cooperation. The last three years sees its accumulative release of such kind of loans totaling 54 billion RMB with 18,254 small and micro clients having obtained low-threshold and low-cost loans endorsement.

Taking the 2-billion-RMB Jiangsu small and micro enterprises loans risk compensation fund led by the Provincial Department of Finance as means of credit, the small and micro enterprises loans are issued by ICBC to the targeted enterprises in accordance with prescriptions on the basis of the line of credit totaling 100 billion RMB accumulated in the cooperation period. The loans carry with them the approval standard of “Two Without and Four With”: without mortgage and without guaranteed debt; with readily marketable products and manufacturing and sales contract (order), with stable cash flow (bank account statement), with sound financial accounting (complete bank statements) and with normal tax payment record. That has transcended the traditional mode of financial institutions which laid emphasis on mortgage and guarantee.

At present, the average implementation interest rate of small and micro enterprises loans stands at 5.36%, far lower than the average loan interest rate for such kind of enterprises in the market. Since June this year, the newly-released small and micro enterprises loans have implemented a preferential interest rate with the lowest registering a 4.35% benchmark rate, in order to respond to the call by the CPC Central Committee and the State Council for easing pressure on small and micro enterprises facing difficulty and high expense in financing. The average rate of small and micro enterprises loans newly launched in June turns out only 4.98%.

Jiangsu has considered further increasing loans magnification and unlocking the annual 25-billion-RMB small and micro enterprises loans with the help of the risk compensation fund totaling 2 billion RMB. In the next year, the province will play a guiding role in trimming down the average interest rate of loans to 4.8%-5%. 

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