300 mln secured loans given to small businesses
- Details
- Category: Governmental News
- Published: Tuesday, 27 November 2012 09:56
Statistics from Ningbo’s Human Resources and Social Security Bureau showed that, till Nov. 15, Ningbo government has already delivered 307 mln yuan of small-sum secured loans to help over 4,300 people to start their own businesses and create nearly 20,000 new jobs.
With the aim to encourage self-employment and support the development of micro and small businesses, employment management agencies of all levels carried out the key policy of promoting entrepreneurship and employment through small-sum secured loans. To be specific, they simplified loan application procedures, lowered loan threshold, and provided door-to-door services and other measures to help people start their own businesses. Statistics show that the government has already delivered 105 mln yuan of loans since the beginning of this year, an increase of 85 percent. It has fulfilled the goal of delivering 100 mln yuan of loans in a year ahead of schedule, and has supported 752 people to become self-employed and created 4,917 jobs at the same time.
The measure of simplifying application procedures and lowering threshold provides applicants easier ways. Qualified applicants include unemployed people, college graduates, demobilized soldiers, and rural residents who hold Ningbo’s city residence and have reached the legal working age. They can take relative materials to the human resources and social security service stations in the districts or towns where their residences are registered to apply for the loan. Once they are proved qualified, they could complete the formalities within five to fifteen working days.
The door-to-door services provide college graduates with more convenience. Qualified college graduates who start businesses in scholar innovation parks or pilot colleges and universities can apply for the loans directly after the recommendation. After verification, employment management agencies would send the loans directly to the applicants. The services have already become available in Beilun College Students Pioneer Park and Zhenhai Scholar Innovation Park.
To achieve the sustainable development of small-sum loans and benefit more self-employers, the government has carried out several measures. First, it sets up credibility files for loan officers and makes tracking services to find out their production and management as well as credibility so as to make sure the guarantee funds are in safe and efficient operation. Second, it also grasps information on the use of loans and loan officers’ production & management condition to ensure the loan can be recovered. At present, the credit system has already been set up and has won initial success, with the average recovery rate being 99.5 percent.