The private lending, as the one of financial form which the access to the loan capital derived from Informal financial institutions, plays the important role on the economic activity, and have a profound impact on the development of local finance. Through the roundly questionnaire survey in the Hui autonomous prefecture of Linxia to understand the present conditions, causes and purposes of the regional private lending, this paper analyze the problems arising during the development of informal capital market, and finally the paper propose the policy advice to promote the development of informal capital.
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