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With micro survey data of 1323 Chinese rural households in poor area, impact factors are analysed with Probit model. Propensity score matching method is used to estimate the impact of credit on rural household welfare loss. Results indicate that education expenditure and fees for marriage service, medical expenditure and spending on house buildings have significant positive impact on credit demand. Compared with those that do not borrow money, loans significantly impact the welfare loss of rural households. Finally we give some suggestions.

Impact Factors Analysis of Credit Demand of Rural Households in China's Poor Area