Risk Control of Small Loan Program for SMEs: a case of Double Exemption Loan Program

摘要

Because of few mortgage and guarantee are available to the Small Medium Enterprises in China, their financing remains a big problem. Recently, banks have been trying to develop small loan program for them, and risk control has become the critical system of financing. Double exemption loan program has been in practice in China. In this paper, special risk factors of double exemption loan program are identified, and by analyzing these factors, the risk control platform of the system is discussed for the significance of risk control. The risk control includes three parts, the supports before the loan, during the loan and after the loan. The practicality of double exemption loan program is analyzed in terms of financing enterprises in China.