Preferential capital program beneficial to disadvantaged households

The preferential loan program of the Transaction Office of the Bank for Social Policies in Ninh Hoa Town, Khanh Hoa Province for production and business households in disadvantaged areas has helped many households develop their business and production to increase their income and thus gradually improve their economic well-being.

The main income of Nguyen Thi Ha's family (Suoi Mit Village, Ninh Tay Commune) is from growing acacia and raising cows. However, her family's production is limited for lack of capital. Thanks to a loan of VND50 million from the Transaction Office of the Bank for Social Policies in Ninh Hoa Town, she has expanded her acacia farm in a 2ha area.

Pham Thanh Phuong (Ninh Tay Commune) takes care of his family's cows.

The family has recently harvested 100 tons of acacia, earning a  profit of VND60 million. After harvesting, in August 2023, she continued to take a VND50 million loan from the program together with her family's savings to invest in planting 2 ha of acacia.

Pham Thanh Phuong's family (Suoi Mit Village) got a loan of VND50 million from the financial program for production and business in disadvantaged areas nearly 5 years ago. The capital was invested in the purchase of 2 breeding cows. His herd has increased to more than 20. He has just got another VND50 million from the program to plant 5 ha of acacia.

The Prime Minister’s Decision 17/2023 amending and supplementing a number of articles of the Decision No. 31 dated March 5, 2007 on credit for production and business households in underprivileged communities takes effect from August 8, 2023. Households in disadvantaged areas will be eligible for loans up to VND100 million each with an interest rate of 9% a year.

According to Lai Quyet Thang, Director of the Social Policy Bank Transaction Office of Ninh Hoa Town, previously, in the town, 4 disadvantaged communities eligible for the production and business loan program included Ninh Tay, Ninh Son, Ninh Tan and Ninh Thuong. Currently, Ninh Son, Ninh Tan and Ninh Thuong have met new rural commune standards, so they no longer access this program.

According to a report by the Bank for Social Policies Transaction Office in Ninh Hoa Town, by the end of August 2023, the loan outstanding balance of the program for production and business households in disadvantaged areas in the town was more than VND38.2 billion, a decrease of more than VND3.1 billion compared to the beginning of the year with 1,049 outstanding loan customers.  Loan turnover in the first 8 months of 2023 was VND4.8 billion with preferential loans offered to 115 customers; Debt collection was VND7.9 billion. The preferential capital program has helped families with economic empowerment, raising income and thus improving living standards. The principal and interest payments have been paid on time.

M.H

Translated by N.T