Baidu-backed fintech Du Xiaoman is teaming up with China’s peak body for small and medium-sized enterprises to provide low-interest rate loans to businesses.
Du Xiaoman and the China Small and Medium-sized Enterprise Association (中国中小企业协会) jointly launched the “Micro and Small Oil Stand” (小微加油站) financial service on 18 November.
The initiative will see the provision of 2 billion yuan in low-interest rate loans to micro-and-small businesses in China, with annualised interest rates starting from 3.65%.
According to Du Xiaoman the goal of the initiative is to help micro-enterprises in China to resolve their working capital challenges.
The initiative will run from 18 November to the end of 2022, and be open to applications via the Du Xiaoman app from industrial and commercial proprietors aged from 22 – 55.
“Fintech has huge potential when it comes to resolving the problem of financing being difficult and expensive for micro-and-small enterprises,” said Du Xiaoman chief risk officer Zhang Jun (张俊).
“Du Xiaoman hopes to better employ technological advantages to continually reduce financing costs for micro-and-small enterprises.”