China Distributes More Than 100 Bln Yuan in Small Loans to Women

Under a financial support program, interest-free loans worth more than 100 billion yuan (US$16.3 billion) were distributed to more than 2.34 million women by the end of September 2012.

In the first nine months of 2012, about 55.31 billion yuan (US$9.02 billion) in small loans was distributed to women, outnumbering the total of the last two years, said Song Xiuyan, Vice President of the All-China Women's Federation (ACWF) at the 11th Executive Committee Meeting of the 10th National Women's Congress held on January 10, 2013 in Beijing.

In 1996, the China Women Development Foundation (CWDF) of the ACWF established a fund to issue small loans to help needy women shake off poverty. More than 20 provinces and regions across China have implemented financial support programs, such as the Hong Kong Poverty Alleviation Program and the Mary Kay Women Entrepreneurs, playing an active role in the poverty alleviation of women.

After 10 years of persistent efforts, the financial support program is making full use of a circular fund model. As the program develops, increasing numbers of women benefit from the small loans. The implementation of the program has demonstrated that it is a model for self-sustainable development and can provide distinct social and economic benefits.

In 2009, the ACWF, together with China's Ministry of Finance, the Ministry of Human Resources and Social Security and the People's Band of China, issued a notice to further improve the program and promote women's employment.

In accordance with the notice, the government has instituted a number of preferential policies for women increasing loan limits, coverage, lending agencies and subsidies.

In recent years, women's federations of different levels have actively negotiated with local authorities to advance the financial support program and worked hard to promote it, supervise loan implementation and provide post-loan services.

"Thanks to the efforts of various authorities, more women have benefited from the program," said ACWF Vice President Song.

"I have obtained loans of 100,000 yuan (US$16,300) in total to raise poultry and earn an annual net income of 30,000-40,000 yuan (US$4,890-6,52o)," said Yuan Zhanmei, a woman from Liangshuiquan Village, Huanghua Township, Chongxin County, Pingliang City, in northwest China's Gansu Province.

"I can pay off one loan within two years and I still have profit in hand," said Yuan. She has not only obtained good profit but also led village fellows to make money of their own.

The financial program has helped women like Yuan to obtain start-up funds and master various types of skills to embark on their paths to make their fortunes and shake off poverty.