Ningbo Improves Small Loans Policy
- Details
- Category: Governmental News
- Published: Tuesday, 16 April 2013 10:18
"With the subsidized loans of 500,000 Yuan offered by the government, my fruit production area can be expanded from 500 acres to 800 acres.” Yao Chunmei, a college student entrepreneur, successfully applied for the small secured loans 50 million on April 8.
In order to encourage start-up and promote entrepreneurship and job creation, a notice was jointly issued by the Ningbo central sub-branch of the People's Bank, the Ningbo Finance Bureau and the Ningbo Human Resources and Social Security Bureau the other day, which further improved relevant provisions for the appliers, loan limits and application procedures.
Specifically, except for urban registered unemployed residents, demobilized soldiers, qualified rural labor force, college students and fresh graduates, founders of entrepreneurial entities with Ningbo’s household registration and college graduates who graduated from colleges with five years are included as qualified appliers. After returning the principal and interests, the government will subsidize the whole interests for them. If they apply the loans for one year, they can renew their loans for another two times.
The loan limits are raised. The loan limit for founders of entrepreneurial entities with Ningbo’s household registration and college graduates who start up alone and offer specific properties as the pledge is increased from no more than 150,000 Yuan to 300,000 Yuan. The loan limit for Partnership entrepreneurship is increased from no more than 250,000 Yuan to 500,000 Yuan in line with the number of partnerships and job creation.
In addition, the application process is further simplified. The applier can submit his loan application directly to the sub-district office of the government which the business license registered.
“After the changing of the policy, more and more entrepreneurs get subsidies, which greatly reduce the cost of venture capital financing.” According to the Ningbo Employment Administration, Ningbo’s small loans distribution reaches 42.95 million Yuan in the first quarter of 2013, an increase of 241% over the same period last year. Among which, 80% qualified appliers get a one-off application 30 million Yuan, in which college student entrepreneurs account for more than 15%. The retail industry tops the application list.
