A herdsman feeds sheep in the rural area of Inner Mongolia autonomous region. [Photo/VCG]

The Municipal Government of Inner Mongolia Autonomous Region has recently released a guidance document with detailed measures for financial institutions to support rural development.

Financial institutions are suggested to build a scientific credit management system with reasonable credit limits and expiration dates, fully satisfying different loan needs of the region’s agricultural and livestock business entities. The credit system is also asked to give preferential treatment to the projects promoting ecological protection and rural tourism, supporting the development of green resources.

In addition, the credit system should also pay attention to the innovation and entrepreneurship projects undertaken by major vulnerable groups in rural areas, including university graduates, businesswomen, migrant workers in cities, needy students and the disabled.

The document puts forward the industrial chain financing model for expanding financing channels. Through deepening cooperation with leading firms in the industry, small and medium firms may be qualified to apply for the financial services, including supply chain finance, purchase order finance and e-commerce finance. 

New financing channels are also encouraged to explore things like an intellectual property mortgage and equity pledge, ensuring successful finance for more firms in the agricultural industry. 

The document also advises financial institutions to establish preferential financial policies for extreme poverty-stricken rural areas with a focus on upgrading the infrastructure. 

Village scenery in the region [Photo/VCG]