A staff member from the Postal Savings Bank of China explains loan related issues to rural residents in Huangsongdian town, Jilin province. [Photo provided to chinadaily.com.cn]

Special entrepreneurship guarantee loans launched by the Postal Savings Bank of China have been solving financing problems faced by rural residents of Huangsongdian town, Jiaohe city, Northeast China's Jilin province, and helping them increase their incomes.

Wu Tiemin and his wife Jiang Yuhuan of the Wudi Edible Fungus Purchase and Sale Cooperative were engaged in the purchase of fungus in Huangsongdian town.

The husband and wife wanted a loan but did not know the procedures. Staff members at the Postal Savings Bank of China offered them help, and the couple realized that as their house is actually a commercial house, they could get a loan of more than 400,000 yuan ($62,800).

A staff member from the Postal Savings Bank of China learns about the edible fungus industry in Huangsongdian town. [Photo provided to chinadaily.com.cn]

With the money from this loan, the couple's business has become prosperous. Now the annual sales volume of edible fungus has reached more than 1.5 million kilograms, and the initial investment has grown to 770,000 yuan.

The fungus acquisition industry is highly seasonal. Each year, distributors need to prepare a large amount of working capital in advance to purchase spring fungi and autumn fungi. Many merchants are restricted by this.

The fungus purchase season generally extends from June to October each year. At this time, staff members of the Postal Savings Bank of China will come to the market in the town, and it only takes half a month from submitting a declaration to the issuance of the loan.

In August 2009, Huangsongdian town was awarded the honorary title of "Hometown of Black Fungus in China" by the China Edible Fungi Association.