MicroCred Nanchong, the first wholly foreign-invested company in
China offering microfinance services, started trial operations in
Nanchong City, southwestern Sichuan Province.
The bank with an aggregate investment of 55 million yuan (about
US$7.37 million) from MicroCred SA of France, International Finance
Corporation, FW Bankengruppe of Germany, and American International
Group, targets small firms, rural households, and self-employed
businessmen.
Its financial services range from credit loans to secured loans
to mortgage loans. The loans vary between 5,000 yuan and 75,000
yuan (US$670 to US$10,054) at a monthly interest rate of 1.1
percent. The minimum loan period is three months while the maximum
is 18 months.
MicroCred Nanchong sources said that its financial services were
not available to individuals. More outlets and services were
possible if the trial operation went smoothly.
As the unprecedented business model was still nascent, MicroCred
Nanchong is not allowed to take deposits and has yet to acquire the
license required for financial institutions. The Nanchong Bureau of
the China Banking Regulatory Commission, however, is responsible
for guiding and supervising its operations.
MicroCred Nanchong has secured a business license from the
Sichuan Provincial Bureau of Industry and Commerce to start the
trial of services.
(Xinhua News Agency November 5, 2007)
