Guangdong Post launched small loan service today (Sept. 19), indicating it has entered the retail asset business.

At the beginning of this year, approved by China Banking Regulatory Commission, the postal service in the provinces of Fujian, Shannxi and Hubei started the pilot program of a small loan business.

The post service used its network to provide financial service for residents in towns and villages, especially farmers. By the end of August this year, over 9,800 loans totaling 301 million yuan had been granted. Each loan averages 28,000 yuan and there have been no reports of bad debt.

To further expand the pilot program the China Banking Regulatory Commission recently approved the post loan service in another 10 provinces, regions and municipalities including Beijing, Tianjin and Guangdong.

Currently, Guangdong Post's 35 service points in Guangzhou, Zhuhai, Meizhou and Maoming can offer the loans.

Editor: Yan