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.
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