Loans help young Lawyers develop their careers

    日期：2007-08-07     作者：Cai Wenjun and Zhang Fengming    阅读：1,990次

THE Shanghai Bar Association signed a deal with Bank of China on Thursday to provide career development loans to young lawyers in the city.

Members of the bar who have lived in the city for at least one year, and worked as lawyers for at least one year but less than three will be eligible to receive loans worth up to 500,000 yuan (US$66,050) - about five times the annual salary of the most successful young attorneys in Shanghai.

The scheme is the first of its kind in China.

Interest rates will be based on the benchmark rates announced by the People's Bank of China, and recipients won't have to put up any collateral.

The loans can be used to set up or develop a law firm, or pay for continuing education, but cannot be used to trade stocks, according to the Shanghai branch of the Bank of China.

While loan applicants won't have to put up any cash or property collateral, they will need to supply a letter of recommendation from a member of the bar association in order to receive any money.

The bank said it isn't worried about lawyers paying back the money as attorneys tend to have good credit records.

Luo Xing, who joined Talent & Fortune (Shanghai) Law Firm in 2003, became the first recipient on Thursday afternoon, when he signed a contract with the bank for a 500,000 yuan loan.

He said he will use the money to promote his business and take legal and financial management courses.

While law firms in the city made 3.2 billion yuan in profit last year, 80 percent of that money was earned by a handful of famous lawyers, according to the bar association. About 17 percent of the roughly 8,000 lawyers working in the city are in their twenties.

According to a survey of 169 lawyers between the ages of 25 and 35, 60 percent earn 50,000 yuan or less, 33.3 percent earn 50,000 yuan to 100,000 yuan and only 6.7 percent earn more than 100,000 yuan a year. Most young lawyers are dissatisfied with their current income.

"Becoming a lawyer is a job requiring investment of time and experience. Most young lawyers suffer a painful period when starting their career, because of a meager social network, limited work experience and little fame," said Lu Hongbing, president of Shanghai Bar Association. "The loan can help them start their career easier."

While lawyers in China only need four years of university education, only seven percent of those who sit the bar exam pass.