Liangjiang drives high-tech growth with unsecured loans

MakeID, a digital identification firm serving clients in Japan, Germany, and beyond, has received a 10-million-yuan ($1.37 million) Sci-tech Growth Loan just one day after submitting its renewal application. "The loan addressed our financial challenges. It is a low-rate, unsecured loan for qualified enterprises," said Ma Hui, the company's financial director. 

Liangjiang boasts more than 1,100 high-tech firms. [Photo by Wang Jiaxi] 

The Sci-tech Growth Loan is a financial offering launched by Liangjiang to support tech-oriented SMEs. It offers unsecured loans ranging from 5 million to 25 million yuan, renewable for up to five years. 

The Sci-tech Growth Loan is part of the area's financing service system, which was established to address the chronic financing challenges of private enterprises, particularly Small-Medium Enterprises (SMEs). 

SMEs serve as driving forces of economic vitality and tech innovation. They face common barriers such as insufficient collateral, difficulties obtaining credit approval, and reluctance from financial institutions. 

The service system comprises a risk-sharing mechanism and multi-party collaborative review process, ensuring risk controllability for financial institutions while improving credit accessibility for businesses.

The risk-sharing mechanism provides 50 percent compensation for loan principal losses in credit risk mitigation products. The multi-party collaborative review process mobilizes relevant administration departments such as the science and technology innovation bureau and the tax bureau to conduct assessments and issue recommendation letters for qualified applicants. 

According to Du Jian, head of the Inclusive Finance Department at Bank of Chongqing's Liangjiang Branch, the multi-party review process enhances the precision of risk assessment and credit decision-making by alleviating information asymmetry between banks and enterprises, thereby facilitating the efficient allocation of financial resources. 

"Tech companies require heavy investment, adopt asset-light business models, and grow rapidly. Our assessments prioritize their growth potential instead of short-term operations, and their R&D progress and industry certifications are convincing factors," Du added.

Since 2019, Liangjiang has rolled out tech-focused financing offerings, including the Sci-tech Growth Loan and the Cross-border Technology Loan, creating a robust funding ecosystem. 

As of December 2024, 1,020 enterprises in the area had received a total of 4.9 billion yuan in tech-focused loans, with rates starting from 2.5 percent. The area boasts more than 1,100 high-tech firms and is expected to reach 1,350 by 2025.