Research on Peer-to-Peer Loans to Rural Poor:Financial Innovation for Supporting the Rural Vulnerable Group

Abstract

For the new socialist countryside constuction and creation of a harmonious society,it has become imminent stage through financial innovations to enable vulnerable groups in rural areas enjoy the equal credit opportunity as far as possible.However,there has been a blood loss mechanism in present rural financial system due to China's economic and financial development strategy in the long run.Meanwhile,the microloan,which truly serves the rural vulnerable groups,has not been developed and generalized due to various practical condition constraints.The three cases of peer-peer loans to rural abroad show that microloan to rural poor can be propelled and developed by decentralized social forces in the appropriate institutional arrangements,achieving win-win balance among lenders,rural poor borrowers,microloan institutions and P2P platform to find a new ways of supporting rural vulnerable groups by microloan.In the present with increasingly sophisticated network technologies the experience of peer-peer loans to rural can be copied and spread,so it may be an important way for rural vulnerable groups access to sustainable finance sevices.