Abstract:The object of mortgage on rural land is land use right, and the capacity for mortgage is dictated by the type of the land use right farmers have and defined by the current laws and regulations. In the course of land marketization, the land rights in each region of China shall be attained with diversity. And it is up to legislature to determine what type of the land right is eligible for mortgage. The construction of the rural land mortgage system on the legal basis depends on the establishment of the rural land use right transfer system, the rural land registration and information disclosure system, the rural land bank and land use right evaluation mechanism as well as the land mortgaging and financing risk prevention mechanism.