Posts Tagged ‘Paipaidai’

Microfinance–Everyone is doing it!

Posted in MF Marketplace on June 25th, 2009 by Yam Ki – Be the first to comment

Everyone is getting excited about microfinance in China. What’s there not to like? It’s “micro” (aka grassroots and chic) and its finance (yay, money!). If someone can win a Nobel Peace prize for it, it has to be good right?

Photo Credit: FXCaliber

Photo Credit: FXCaliber

The Chinese government is so eager about it, it has tried to promote it (by my count) seven different times: Rural Credit Cooperatives, Agricultural Development Bank loans, Microcredit Companies, Village Banks, Rural Mutual Credit Cooperatives, Small Loan Companies, and Postal Savings Bank loans.

The private sector is also excited with thousands of registered guarantee companies and small loan companies. Not to mention the hundreds of companies registered with consulting / management licenses that engage in lending-like business model.  With the latest round of government push for microfinance to help the rural poor and the unemployed, even web entrepreneurs are jumping in for some action.  Many of these online sites are throwing around the word “microfinance” along with “P2P lending” and “social responsibility” for added chic.

But are they really microfinance? read more »

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