Microcredit company owner helps local farmers in Yunnan(2)

Jiao said, "The old saying, you give them a fish you feed them for a day, you teach them how to fish you feed them for a life time. Individually they have more power. They won't be reliant on donations reliant on people feeding them no matter if it's food, clothing or money. It's them controlling their own faith."

Jiao's company charges 1.8 percent interest rates on loans, which is double of what local banks offer. Since microfinance is still a new concept in China, people still associate lenders with loan sharks who are trying to make as much profit as they can from the poor but Jiao has to constantly work against the stereotype.

Jiao said, "I'm working within a legal framework and also if you compare me to the local loan sharks they are charging one, two, three hundred percent more than it's being allowed. It's a constant challenge to justify yourself to the locals to the government. How do I overcome that challenge? With numbers, with data, our loan rates are acceptable and it's making a difference."

Microfinance has the ability to promote employment, boost self-esteem and contribute in the development of a community. I'm at Wang Guoyu's tea farm where a family of four was able to expand their tea farm business with 50,000 RMB worth of loan.

Wang said microcredit loans don't just help individuals but also contribute to the region.

Wang Guoyu, tea farmer, said, "My living standards and tea farm business have been improved. The different industries in this area have been developed. It gave more jobs to the people, which boosted our economy."

There are certain risks that come with lending to farmers, where people can't pay back the loans on time because their business didn't go well, but Jiao said it's measurable.

Jiao said, "My team members their diligence in terms of research, they talk to every family we give our loans to, we measure our risk. If we think this family is not healthy at this point doesn't mean we don't help them but our product doesn't fit for them."

Every job has its challenges but being able to interact, observe, and learn from people gives Jiao the most satisfaction. It also gives him a chance to redefine what the concept of charity means.

Jiao said, "Start small, means that you don't have to aim so big. You don't have to say I'm going to tackle poverty; you don't have to say I'm going to resolve the education problem. As an individual, your duty is to offer another individual a smile because in return you get the same feeling back."

Jiao is very optimistic about the future. And as the nation wide policy develops on microfinance, he hopes his model can become a cornerstone and example to many other microcredit companies, to be able to work together in alleviating poverty across China.