A Case Of College Students' Small Business Loans

Recently, our province has issued policies to refer to the management of small loans for laid-off workers, and to grant loans to college students who are self-employed.

Reporters learned yesterday from relevant departments that in July last year, our province had issued a policy requiring financial institutions to increase the support of university graduates' self starting business loans. However, there has not been one case in which our province has really obtained loans for self employment.

In charge of credit statistics, a bank in charge of credit Statistics said that the amount of the small loan business of the graduates has not been counted, so the specific figures of the volume of business can not be known. The fundamental reason is that the business volume is negligible.

According to our understanding, last year, our province issued a policy requirement that the university graduates could be the main borrowers of the business loans for university graduates, and the guarantor could provide the corresponding joint guarantee for the stable income or effective assets of their families or immediate family members.

For good credit and guaranteed repayment, credit loans should be appropriately distributed on the basis of controllable risks.

In this regard, the industry believes that graduates who are in urgent need of loans tend to have family income in general. How can they provide effective guarantees?

Therefore, this method is not very operable.

In response to this practical problem, recently, the provincial Office of personnel and special research on related issues suggested that local governments cut some of the money from the finance as a guarantee fund to solve the problem of guarantee.

At present, local governments have put this plan on the agenda, but because of the annual budget constraints, these funds will probably be established by the end of this year to the beginning of next year.