Soft Information and Lending Relationship Analysis of Micro-loan Company with Game Theory

Micro-loan company has opened up a new way to solve the "Farmers, Rural Areas, Agriculture Production" problems, the financial difficulty of SMEs and financial need of low-income groups in China. With the analysis of soft information and relationship banking theory, this paper studies lending relationship between micro-loan company and loan client with the dynamic game of Bayesian equilibrium. We argue that soft information is the key factor in decision-making of micro-loan company. To reduce the problems of asymmetric information, performs its functional position in financial market better, micro-loan company should prodominate soft information of loan clients more comprehensively and effectively.