The Pudong district of Shanghai has just seen the launch of its first “credit village” (信用村) as part of efforts to better cater to the financial needs of rural residents in the greater Shanghai metropolitan area.
Haishen Village (海沈村) in Pudong’s Huinan County was recently designated a “credit village,” which means that rural households in the village seeking loans will no longer be required to provide collateral or guarantees to financial institutions.
Since 2019 the Shanghai branch of China’s central bank has pushed for local financial institutions to accelerate the development of a rural village credit system for the region, calling for the collection of information on rural households as well as the creation of “credit villages.”
A total of six such “credit villages” have already been established on Chongming Island – the northernmost district of the Shanghai municipality.
The Nanhui branch of the Agricultural Bank of China (ABC) has also compiled files on 1257 rural households in 104 administrative villages through the Pudong district, providing lending quotas to 1142 of them, as well as extending 21.249 million yuan in credit via rural benefit e-loans (惠农e贷).