Microfinance in Ningxia

Microfinance is widely used in Ningxia by farmers whose access to banking and related services is limited because of high transaction costs.

Microfinance helps local farmers start small businesses, mostly stock farming, and alleviate poverty and reliance on aid, according to Long Zhipu, director of Ningxia Huimin Microfinance Company.

In 2011, the company has provided 7,686 rural households with loans ranging from 3,000 to 20,000 yuan. According to Long, 87.24 percent of the company's clients are women.