Advanced Search
Business | Metro | Nation | World | Sports | Features | Specials | Delta Stories
Small loans create jobs
28/11/2005 16:17

Wendy Zhang/ Shanghai Daily news

A growing number of people in Shanghai were granted loans this year to fund their own businesses, according to the Shanghai Labor and Social Security Bureau.
Small loans increased by nearly 200 and, at more than 10 million yuan (US$1.2 million) monthly and a total of 143 million yuan for the year to date, increased by 168.2 percent in terms of total value from a year earlier.
Commercial banks don't want to extend loans to start-ups as the amount borrowed is usually small and the borrowers lack credit records. Over the past five years, local government has developed a procedure to support start-ups. Qualified intermediate agencies are assigned to help proprietors draw up plans for money-raising and evaluate their assets before they receive loans, and they also offer follow-up services, such as collecting business information for them every month.
This helps the entrepreneurs to get loans and improve their credit standing, and also the commercial banks to lower risks, said an industry analyst, adding that people who retain their good credit records will find it easy to get loans in the future.
"We will not only support local jobless people and migrant workers from the suburbs, but all the local employees as well, with more preferential policies expected," said a spokesman with the Shanghai Labor and Social Security Bureau.
Over the past five years, the city has extended 4,240 loans valued at more than 290 million yuan, which have helped to create more than 37,000 jobs.