Loans under borrowed names easily harm farmers' interests and must be strictly guarded against

Recently, some media reported that many farmers in Yangxi Township, Yujiang County, Jiangxi Province were dumbfounded when faced with being sued by a bank demanding repayment of the principal and interest of the full loan. It turned out that 6 years ago they applied to a certain bank's Yujiang sub-branch for a 30,000 yuan small loan for farming households, but they received only 10,000 yuan, while the other 20,000 yuan flowed into the hands of a local contractor engaged in the construction industry, and now they are being asked to bear the responsibility.

It is understood that "loans under borrowed names" are not uncommon in rural areas. In recent years, the state has increased financial support for rural areas. Loans to benefit farmers, originally intended to help farmers, have become a funding channel for some people to obtain low-interest loans. Because farmers have poor awareness of prevention and are unfamiliar with policies, and because in many cases village officials assist on the side and loan officers tacitly consent, many farmers end up taking the blame for loans, which not only causes losses to state funds and farmers, but also damages the credibility of loan policies to benefit farmers among the public.

For such problems, first, farmers must raise their awareness of prevention and must not hastily lend out their "loan name" because of some immediate benefit or because they cannot refuse a favor; local authorities must also intensify the investigation and crackdown on those responsible for fraudulent loans; financial institutions must further strengthen qualification reviews and post-loan supervision, and carefully investigate what other potential "loans under borrowed names" exist. They cannot always wait until matters are exposed and then simply seek compensation from farmers.