East China's Tongxiang City has been making it easier for villagers to get loans as a way to stimulate the economy and raise living standards.

Sun Yueqing, who sells fertilizer and other agricultural products in Rongxing Village in the city, has benefited from the change. 

In the past, it was hard for Sun to find money to buy enough merchandise in the winter. Without collateral that enables him to get bank loans, he had to borrow money from relatives and friends.

"Why do I borrow money to buy these products in the winter? Because winter's the off-season, so I can get them at a lower price," said Sun, adding that the surge of demand and price in the spring would create a margin between the purchase at different seasons.

His difficulty was resolved by the local authorities, who created a channel for villagers to get a bank loan with just a few clicks on their phones.

Excluding a minority of people with bad credit records, most people in the village can get a loan ranging from 50,000 yuan ($7,740) to 500,000 yuan without any collateral.

Sun said after getting a loan, he can buy a lot more commodities at lower prices in the off-season, and when farmers come to buy them from his shop, they can spend less money too. It is a win-win situation for him and the farmers, he said. 

Local authorities said the loan scheme has injected vitality into the economy. So far, 482 rural households have borrowed 95.5 million yuan with the program.

Previously, credit loans required guarantees and the procedure to apply for one was complicated, according to Jin Fuliang, party secretary of Rongxing Village, east China's Zhejiang Province.

Jin said the situation hindered the way for villagers who wanted to start a business. This is why the scheme was created, he said.

After more than three years in operation, Jin said 70 percent of the loan is used for entrepreneurship, and 30 percent is used for production, building houses and living.