Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
Plans to lift small loan firms, businesses
By Zhang Fengming |
February 13, 2009, Friday
|
Print Edition
Print Edition
SHANGHAI is drafting guidelines on ways to help small businesses and is also setting up an industry association which will back the interests of small-credit companies, the city's financial office said yesterday.
The city will help small-credit companies to develop their lending system and offer preferential policies to help the industry, the Shanghai Financial Services Office said, without giving more details. Shanghai is expanding the trial scheme on small-credit companies from 10 rural-related districts to the rest of the city.
Shanghai has approved the set-up of 23 small-credit companies, of which 14 have started operations. Since the first such firm opened in November in the city, they have made 311 loans worth 390 million yuan (US$57 million).
The Shanghai small-credit companies charge an average rate of 15.8 percent for a loan, with the lowest rate at 5.99 percent. The People's Bank of China, the central bank, has set the one-year benchmark lending rate at 5.31 percent while the key rate for a six-month loan is 4.86 percent.
Though they are banned from accepting deposits, small-credit firms can make short-term loans of a maximum of one-year duration to meet the thirst for short-term capital by small businesses. They can charge higher interest rates than banks, thanks to their flexible credit-issuing procedures.
There are more than 300,000 small business firms in Shanghai, and most find it hard to get bank loans.
The city will help small-credit companies to develop their lending system and offer preferential policies to help the industry, the Shanghai Financial Services Office said, without giving more details. Shanghai is expanding the trial scheme on small-credit companies from 10 rural-related districts to the rest of the city.
Shanghai has approved the set-up of 23 small-credit companies, of which 14 have started operations. Since the first such firm opened in November in the city, they have made 311 loans worth 390 million yuan (US$57 million).
The Shanghai small-credit companies charge an average rate of 15.8 percent for a loan, with the lowest rate at 5.99 percent. The People's Bank of China, the central bank, has set the one-year benchmark lending rate at 5.31 percent while the key rate for a six-month loan is 4.86 percent.
Though they are banned from accepting deposits, small-credit firms can make short-term loans of a maximum of one-year duration to meet the thirst for short-term capital by small businesses. They can charge higher interest rates than banks, thanks to their flexible credit-issuing procedures.
There are more than 300,000 small business firms in Shanghai, and most find it hard to get bank loans.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
