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Bonding Company to Secure Loans for Farmers
A bonding company that will secure loans granted by banks to farmers was set up this month in Tongxiang, east China's Zhejiang Province, the first company of its kind ever established in the province.
The amount secured by the company could amount to 20 million yuan, with the highest amount for an individual farmer reaching 100,000 yuan.
The bonding company signs guaranteed contracts with local credit cooperatives to secure the loans that farmers borrow.
Wu Ming is one of the first group of local farmers to get loans from the rural credit cooperative, totaling 50,000 yuan, and the loan was secured by the bonding company. Wu will use the money to expand his rabbit-raising business.
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