Dharamshala: The first microcredit institution in the region was established in Lhasa, the capital of Tibet on April 11th, reported Chinese government-mandated news agency Xinhua. The Yurong Microcredit Company has a registered capital of 7.33 million US dollars, the full funding of which was supplied by private investors and enterprises.
The function of microcredit companies is to provide very small loans to people living in or close to poverty to help stimulate entrepreneurship. Micro loans are extended to those who cannot establish credit allowing them to get loans, because they do not have any steady employment or collateral of their own.
A spokesperson for the Yurong Microcredit Company said that their target group is small and medium sized enterprises, along with herdsmen and entrepreneurs. Said the representative, "One of our purposes is to improve the life standard and social welfare of the poor people in this region."
