Microfinancing for Poverty Alleviation: a credit product jointly launched in 2014 by the China Banking and Insurance Regulatory Commission, the Ministry of Finance, the People's Bank of China and the State Council Leading Group Office of Poverty Alleviation and Development to provide precise support to registered poor households.
The three-year loan provides no more than 50,000 yuan at benchmark interest rates without collateral or guarantees.
The government provides financial discounts for borrowers, and counties compensate the lenders with their fiscal funds. The policy has achieved remarkable results in helping the poor develop production, shake off poverty, boost their internal drive as well as promoting the development of financial markets in poor areas, and improving social governance in rural areas.
