JOT-CREDIT PROBLEMS OF RURAL CREDIT COOPERATIVE AND SUGGESTIONS: THE CASE OF XIN LE COUNTRY, SHIJIAZHUANG CITY, HEBEIPROVINCE, CHINA

The rural credit cooperative is an important part of financial system in China. The jot credit provided by rural credit cooperative serves as an important financial tool for its members. The reformation of rural credit cooperatives on 2014 has further strengthened the important of jot credit in Hebei province, China. However, there are problems in the jot credit as shown by the increasing income gap between the rich and poor. This warrants a study to unveil the problem of rural credit cooperative’s jot credit and suggestions to improve the jot credit. Using the case of Xin le Shijiazhuang, Hebei province, this paper aims to explore the rural credit cooperative’s jot credit problem and suggest potential solutions. Results reveal that there are high demand for loan among the peasants. However, the tedious application procedure, rigidity in the duration and terms of loan, are the problems that discouraging jot credit usage among the peasants. It is suggested that the scope of service, duration and terms of loan to be expanded to meet the diverse needs of peasants. In addition, the nimble rate should be implemented on the jot credit by stages. The jot credit is the new direction of the credit business development. Peasants have high enthusiasm in repayment and the non-performing loan is in a downward trend. Meanwhile the jot credit, to certain extent, still has some problems to be tackled.Keywords: Rural Credit Cooperative; Jot-Credit Problems; Xin Le Country.