Tognlu issues loans to boost homestay development

Qimengli, a homestay run by Fan Lijuan in Fenshui town, Tonglu county, East China's Zhejiang province. [Photo provided to chinadaily.com.cn]

Fan Lijuan, the owner of the Qimengli homestay in Fenshui town, Tonglu county, East China's Zhejiang province, recently became the first homestay owner in the county to receive a loan.

Provided by the Tonglu branch of China Minsheng Bank, the 500,000-yuan ($76,923) loan comes with an annual interest rate of 4.8 percent. Fan said she will use the funds to upgrade her homestay, which was established two years ago.

Homestays have been sprouting in Tonglu in recent years due to the robust growth of the local tourism sector. A preliminary survey shows that Tonglu currently has over 700 homestays, including more than 100 boutique homestays, according to Yue Yang, president of the Tonglu branch of China Minsheng Bank.

The introduction of the loan is aimed at alleviating the financial constraints faced by homestay operators like Fan.

Yue said that the bank will launch more inclusive financial products in the future to boost local rural revitalization and common prosperity.

Qimengli, a homestay run by Fan Lijuan in Fenshui town, Tonglu county, East China's Zhejiang province. [Photo provided to chinadaily.com.cn]