Abstract: This paper focuses on the risk prevention and control of retail loans in rural commercial banks. In view of the deficiencies in existing research and the actual development situation of XJ Rural Commercial Bank, it first explains the relevant concepts such as retail loans of rural commercial banks and risk prevention and control, as well as basic theories such as modern portfolio theory and credit scoring model theory. Then, taking XJ Rural Commercial Bank as the research object, it analyzes the current situation of its retail loan risk management and makes an empirical analysis of the influencing factors of the bank's retail loan business risks. The result shows that the factors affecting default risk include three categories: the individual characteristics of borrowers, the repayment ability of borrowers, and loan-related terms. Finally, combined with the actual situation of XJ Rural Commercial Bank and the market environment, it puts forward risk prevention and control measures such as strengthening pre-loan access management, reducing customer debt service pressure, constructing a full-cycle risk control system, and enhancing risk mitigation capabilities. This study would provide theoretical reference and practical guidance for XJ Rural Commercial Bank and other rural commercial banks in effectively preventing and controlling retail loan risks.