Rui'an Huafon Small-sum Loan Co. Ltd., a key lender to micro-enterprises in Rui'an City near Wenzhou,Zhejiang Province, is now shouldering more social responsibility by establishing service centers to help farmers and small business owners in rural districts to secure microloans.

Huafon Small-Sum Loan Co. Ltd. is one of the largest micro lenders in Zhejiang Province, with 1.51 billion yuan in outstanding loans. In its three years of operation, the company has made over 11,000 loans worth a total of 14.1 billion yuan, to thousands of small enterprises.[Photo/China.org.cn]

The company was the first private micro lender in Wenzhou area to receive government approval. Since it took off in 2008 with an initial investment of 200 million yuan, the company has made more than 11,000 loans to small and micro-enterprises in Rui'an City. Its total assets quadrupled to 800 million yuan by 2010, earning the business a spot on the China Top 100 Competitive Small-loan Companies List. Assets reached 1.5 billion yuan last year.

The company set up its first rural service station in Nan'an, a remote town in the western mountainous area of Rui'an City in 2011. A second center opened up in Xianjiang town in July of this year. Loans extended to micro-enterprises can carry a maximum amount of 4 million yuan, with loan terms ranging anywhere from one week up to one year. Generally the loans serve agricultural or local manufacturing projects.

Rui'an Huafon's service centers provide a quicker response time and better service for rural residents compared to banks, says the company's chief lender Chen Shouqing, during an interview at the company's Rui'an City headquarters. Chen said that upon evaluation of the success of the new Xianjiang town service center, he plans to explore the building of additional centers in other towns and villages within the company's lending jurisdiction.

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