Bank for Social Policies in Ninh Hoa Town: Solid support for the poor

Over the past 20 years, the Bank for Social Policies (VBSP) in Ninh Hoa town has always been a solid support for the poor and other policy beneficiaries in economic development, contributing to a better living for the poor in Ninh Hoa.

 

Previously, Duong Thi D.'s family (Tan Son village, Ninh Xuan commune) was very difficult. In 2017, her family was lent a preferential loan of VND 50 million from the VBSP Ninh Hoa to invest in cow breeding. Thanks to the initial capital and good caring, the herd of cows grew quickly and without disease, so her family gradually got out of poverty. “After getting out of poverty, my family continued to borrow VND 90 million from the VBSP Ninh Hoa from the program for newly escaped poor households to invest in growing acacia and increasing herd of cows. In addition, this family also got a loan of 20 million VND to repair the toilet and install tap water. Now, the family's economy has begun to stabilize,” said D.

 

Hearing the news that her son passed the university exam, the family of Pham Thi B. (in Binh Thanh village, Ninh Binh commune) was happy but worried. Her family is difficult, meals are sometimes lacking, so she couldn’t afford paying for the college education cost. Fortunately, the family was lent 60 million VND by the VBSP Ninh Hoa, helping her son go to university.

 

 

 

 

 

Those are 2 out of hundreds of thousands of cases that have received timely support from VBSP in Ninh Hoa town over the past 20 years. Lai Quyet Thang - Director of the VBSP Ninh Hoa said that from 2003 to the end of June 2022, 104,743 turns of poor households and other policy beneficiaries received loans, and the loan turnover was more than 1,572 billion VND. Up to now, 6,602 households have escaped the poverty; 105 near-poor households, 4,917 households that have just escaped poverty and 2,114 households in difficult areas have been given loans; 9,387 employees have been helped to have jobs; 12,832 students have been supported for school; 55,449 rural clean water and sanitation projects have been constructed, renovated or repaired, 186 houses have been renovated or built…

 

As of June 30, the total outstanding loans of VBSP Ninh Hoa were more than VND 662 billion, with 25,127 households having outstanding loans. Bad debts were 1,461 billion VND, accounting for 0.22% of total outstanding loans. The VBSP Ninh Hoa sets a target that by 2030, 100% of poor households and eligible policy beneficiaries will access to policy credit sources; annual average growth of capital will be 10% or more; average annual growth of outstanding loans will rise from 8 to 10%; overdue debt ratio is less than 0.19%.

 

According to the leader of VBSP in Ninh Hoa town, in 2003, the bank only had 2 lending programs, but now it has fully implemented 15 lending programs. The highlights are loans to poor households, near-poor households, households just escaped from poverty, pupils and students in difficult circumstances, job creation support, labor export, clean water and rural environmental sanitation, poor households building houses, production and business households in disadvantaged areas, difficult ethnic minority households… The diversity of loan programs helps disadvantaged households and policy households to access capital more easily.

 

In addition, VBSP's transaction points are located in each commune and ward. The operation of the commune-level transaction point has contributed to bringing capital to the grassroots, reducing travel costs for people, and well performing the publicity and democracy in grassroots credit activities. Over 99% of activities such as debt collection, interest collection, lending, capital mobilization... are carried out at commune transaction points.

 

Nguyen Minh Thu - Vice Chairman of Ninh Hoa Town People's Committee said that, 20 years of lending from programs, the VBSP Ninh Hoa has contributed to reducing the rate of poor and near-poor households over the years, then, accompany with the town to complete the poverty reduction targets and build a new countryside.

 

Hong Dang

 

Translated by T.T