Over the past years, the transaction office of the Khanh Son District Bank for Social Polices, Khanh Hoa Province, has given a high priority on offering loans to the needy...
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| Nguyen Thi Thu Hang, Deputy Chairperson of Khanh Hoa Provincial People’s Committee (4th from right) inspects the lending of Khanh Son District Bank for Social Policies. |
According to Tran Van Khue, Director of the transaction office of the Khanh Son District Bank for Social Policies, the bank has provided loans for the poor and policy beneficiaries to expand their production and business. The office in cooperation with the youth’s union, farmers’ association, women’s association as well as other saving groups has propagandized productive uses of the financial resources. Many families have succeeded and their living standard has much improved. Typical examples include Dao Van Thuc, an owner of 0.5ha coffee trees; Vu Van Dang with 0.3ha of durian trees and 0.4ha of coffee trees; Bo Bo Kha with 4 cows and 0.4ha of purple sugarcanes, earning VND15-20 million a year.
The total volume of loans of the transaction office of Khanh Son District Bank for Social Polices has reached VND10.3 billion benefiting 700 disadvantaged people, including poor students. The loans have helped many to overcome financial difficulties. The maximum loan is VND30 million/ household and the total loan balance is VND63.2 billion, an increase of VND4.7 billion over the year 2009.
To reduce poverty effectively, the lending has to be well-targeted. However, many borrowers are small-scale farmers with backward farming practices, lack of updated knowledge of advanced technology. Therefore, the effective rate of the loans is not high, resulting in many cases of over-due loans.
Nguyen Thi Thu Hang, Deputy Chairperson of Khanh Hoa Provincial People’s Committee said, “The district must give guidance to borrowers on how to make good use of the loans. Khanh Son is suitable for cultivation of durians, purple sugarcanes, coffee trees, etc, which are profitable investment local residents should make. Giving assistance to poor famers are providing not only financial aid but also access to technology and markets.”
N.T
