How To Get A Small Secured Loan After Laid-Off?

Reporter: Bai Tianliang, a newspaper reporter, interprets the person: the Ministry of labor and social security, the people's Bank of China and the relevant departments of the Ministry of Finance responsible comrades, as early as 1998, the central government issued a preferential policy for small loans.

In 2003, the Ministry of labor and Social Security jointly worked out with the people's Bank of China and other departments to develop a new management approach for small secured loans.

It is understood that as of the end of last year, laid-off workers small secured loans have accumulated more than 800 million yuan.

Now, more and more laid-off workers are eager to get this kind of loan.

So how can laid-off workers enjoy this preferential policy?

The reporter interviewed the responsible comrades of the relevant departments.

According to the regulations, anyone who is unemployed under the age of 60, who is healthy, honest and reliable, and has a certain labor skill, who is seeking employment or starting a business independently or has a partnership to organize employment, will be able to apply for a small amount of the self financing part under the premise of undertaking a guarantee by the loan guarantee agency. He can apply for a small loan secured by a re employment permit issued by the labor and social security department to the commercial bank or his branch.

According to the introduction, the amount of small secured loans is generally around 20 thousand yuan, and the term of loan is generally not more than two years. If the borrower proposes to extend the period and the Guarantor agrees to continue to provide the guarantee, the commercial bank may extend the service one time according to the regulations, and the extension period shall not exceed one year.

The interest rate of small secured loans is determined according to the loan interest rate announced by the people's Bank of China, and it is not allowed to float upward.

Small guaranteed loans for small profit projects are fully subsidized by the central government, and the duration is not interest.

For partnerships and organized employment, the size of loans can be appropriately expanded after consultation between the two parties.

Small secured loan business can be widely developed in all commercial banks, agricultural cooperative banks and urban and rural credit cooperatives throughout the country.

There are a lot of laid-off workers who are interested in the "meager profit projects" that can enjoy interest discount, but they don't know what projects they are involved in.

The reporter understands that the "meager profit" project refers to the self employment projects of laid-off and unemployed people engaged in business, catering and repair in communities, streets, industrial and mining areas.

These include: family handicraft, repair and repair, book lending, hotel services, catering services, washing and dyeing, sewing, copying, typing, hairdressing, small dining tables, canteen, moving, time service, family cleaning services, primary health care services, infant care and education services, education and training for disabled children, care services, pension services, patient care, child care and student delivery services.

All locals have further defined the meager profit projects according to the local conditions.

Small businesses have greater credit support. In some places, the laid-off and unemployed people have limited entrepreneurial capacity, mainly relying on recruitment, which makes the development of personal small loan guarantee slow.

To this end, the relevant departments have promulgated policies to increase credit support for small businesses so as to increase employment opportunities for laid-off and unemployed people with weak employability.

The people's Bank of China and the relevant departments jointly issued a document to encourage commercial banks to increase their credit support for labor-intensive small businesses that had recently recruited laid-off workers to reach more than 30% of the total number of employees in the enterprise and signed a labor contract with a term of more than one year. According to the number of laid-off and unemployed people, the loan amount should be reasonably determined, with a maximum of not more than 1 million yuan, and the loan period should not exceed two years.

At the same time, the commercial banks that set up this business will be given a discount on the basis of 50% of the loan benchmark interest rate (excluding floating part) stipulated by the people's Bank of China, and the interest discount funds shall be borne by the central and local governments.

In addition, the local finance will also give the bank a fee subsidy.