Recently, in the context of the Covid-19 epidemic, the transaction office of the Bank for Social Policies (VBSP) in Khanh Son district (Khanh Hoa) has increased disbursement to meet the borrowing needs of customers to production and business development.
Recently, in the context of the Covid-19 epidemic, the transaction office of the Bank for Social Policies (VBSP) in Khanh Son district (Khanh Hoa) has increased disbursement to meet the borrowing needs of customers to production and business development.
Many households get loans
Cao Xuan Nhiem's household (in To Hap town) grew 100 durian trees, along with other crops such as coffee and pepper. However, due to lack of capital, he borrowed VND 100 million from VBSP under the loan program for households just getting out of poverty, supported by 50% monthly interest rate. “From the loan, my family bought fertilizers and made an irrigation system to take care of the crops. Then, plants grow and develop quite well" said Nhiem.
Bo Bo Thi Thanh Mai - Chairwoman of To Hap Town Women's Association said that, the association is managing 10 saving and loan groups of VBSP, with more than 500 borrowers and a debt balance of more than 2.8 billion VND. Most women borrow money for planting, breeding and small trading, partly increasing income and getting out of poverty. Particularly in 2021, the To Hap Town Women's Association has nearly 20 members who have escaped poverty thanks to loans from VBSP.
According to Thai Thi Vinh - Head of savings and loan group in Ta Nia village, Son Trung commune, the group is managing 60 borrowers with a total outstanding loan of 3.3 billion VND. Most of the members in the group borrow money through credit channels to create jobs and do business in difficult areas. In 2020, there were 5 poor households in the group; At the end of 2021, 4 households escaped poverty.
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Improving quality of credit
At the end of 2021, the total outstanding balance at the transaction office of the district VBSP reached 221.7 billion VND. The district has 125 savings and loan groups. In order to improve the quality of policy credit, over the past time, the district VBSP's transaction office has strengthened solutions to mobilize deposits, boosted debt collection, especially closely implemented the appraisal process for loans before disbursing.
Nguyen Thanh Hung - Deputy Director of the district VBSP's transaction office said that the unit regularly cooperates with entrusted mass organizations to train and guide officials of associations and mass organizations at grassroots level, checks customer's loan documents, guides people to use the loan capital for the right purpose and effectively. After disbursing, the mass organizations must check the actual use of the loaned household's capital. If any case doesn’t use loans for the right purpose, the transaction office continues to guide the household to use it for the right purpose and promote the efficiency of the capital. Thereby, contributing to helping people increase their income, improve their lives, and have conditions to pay capital and interest to the bank in accordance with regulations; contribute to reducing bad debts and overdue debts.
In 2021 alone, the district VBSP's transaction office disbursed more than VND 53.2 billion to 1,314 households to borrow money under 8 social policy credit programs, mainly credit channels focused on lending to poor, near-poor households, just escaping poverty households as well as production and business in difficult areas, with an average loan of 37.1 million VND/household. Most of the disbursed capital is entrusted through four socio-political organizations: Farmers' Association, Women's Association, Veterans' Association, and Youth Union, in order to ensure that preferential credit funds reach the right beneficiaries quickly and efficiently. In the context of the Covid-19 epidemic affecting all aspects of people's life and production, preferential loans from VBSP have contributed to supporting people to recover, develop production, and increase income, step by step escape from poverty sustainably. In 2021, the district has reduced 375 poor households.
Dinh Luan
Translated by T.T
