A representative (middle) from the PSBC Siping branch explains the bank's loan policies to customers in Siping city, in Northeast China's Jilin province. [Photo provided to chinadaily.com.cn]

The Postal Savings Bank of China (PSBC) branch in Siping -- a city in Northeast China's Jilin province -- has introduced an effective innovation to provide better and more convenient credit service for local enterprises, amid the surge in the city's high-quality economic development.

According to local media reports, PSBC Siping branch introduced the service that was specifically designed for small and micro-sized enterprises, or SMEs.

Under the initiative, as long as SMEs apply for a loan to the bank once, and the corresponding credit line is granted after approval, they can draw and use the capital within the credit limit within five years.

They can also continue to apply for another new loan without repayment of the loan principal every year.

Since the PSBC Siping branch issued the first loan under the service in April 2018, a total of 85 loans involving 615 million yuan ($91.02 million) have been issued. The service has effectively solved the short-term and urgent financing needs of SMEs, especially private SMEs -- and greatly reduced the financing costs of enterprises.

At the same time, in order to promote the income of local farmers, the Siping branch has introduced preferential policies to the villages with a high-credit rating.

Each qualified resident in these villages can obtain unsecured credit loans of 100,000 yuan by virtue of personal credit. This meets the financial needs of villagers to expand planting and breeding.

As of Aug 31, the Siping branch had established a total of 45 high-credit rating villages, with 1,153 high-credit rating households identified and about 25.09 million yuan of loans loaned to 364 households.

In addition to providing financial products and support for the development needs of villagers, Siping branch also actively supported local poverty alleviation work.

In October 2018, it donated 10,000 yuan to renew the desks and chairs of the students in schools in poverty-stricken areas, assisted with improvements of the conditions of schools in poverty-stricken villages and helped create a sound learning environment for the students.