Help poor households to utilize loan capital

(Baonghean) - Through loan support programs of credit institutions, relevant levels and sectors, people in rural areas, especially poor and near-poor households, have access to preferential interest rate loans to develop production and livestock farming.

Previously, Mr. Dinh Huu Son's family in Hamlet 12, Nam Linh Commune (Nam Dan) was in a difficult situation. Through the Savings and Loan Group of Hamlet 12B, he was able to borrow 50 million VND to buy 2 cows to develop livestock farming. Recently, the cow gave birth to another calf and the sale of the first calf earned 11 million VND. From there, the family boldly invested in developing cattle farming and planting raw material forests in the Bai Tren area. Mr. Son happily said: "Currently, the family has escaped poverty and gradually become rich from the farm economic model." Ms. Tran Thi Lien's family in Nam Linh commune also borrowed 30 million VND from the Savings and Loan Group to buy breeding cows, then develop the herd and sell all the cows to get money to invest in renovating the mixed garden into a lemon garden for high income... In hamlet 12B, Nam Linh commune, the Savings and Loan Group has 19 members (current outstanding debt is 268 million VND) and through capital support programs to solve employment, poor and near-poor households are able to borrow capital to focus on investing in livestock, renovating mixed gardens, planting lemons and fruit trees that bring high value.

Ms. Nguyen Thi Hang, Vice President of the Women's Union of Nam Linh commune, said: "Through 7 savings and loan groups of the association, 150 members have been attracted to borrow capital (with outstanding loans of 3.8 billion VND) to invest in economic activities. The association is very interested in projects that exploit the advantages of hilly land, afforestation, and livestock development; 30 households have been able to borrow 1.6 billion VND to focus on investing in cattle breeding and so far have been very effective. Many households have escaped poverty and gradually become good economic models, generating high incomes." The outstanding loan balance of the entire Nam Linh commune has reached 12 billion VND. Mr. Ho Van Ly, Director of the Nam Dan Social Policy Bank Transaction Office, said: "In order to promptly meet the capital source for people to eliminate hunger, reduce poverty, invest in livestock development, production and business, in the first 7 months of 2015, we have resolved loans of 51,762 million VND for 350 customers who are poor households, 686 near-poor households, 54 households borrowing capital to create jobs... Along with that, the banking industry also coordinates with entrusted organizations including: Women's Union, Veterans Association, Farmers' Association, Youth Union to regularly organize professional training courses, guide the application of science and technology in livestock farming and production, and at the same time check the use of loans, so that people invest and use capital for the right purpose, promoting efficiency".

Mr. Dinh Huu Son's family in hamlet 12, Nam Linh commune (Nam Dan) escaped poverty thanks to a loan to raise cows.

From the support capital of the Provincial Social Policy Bank, poor and near-poor households and policy beneficiaries have the opportunity to borrow capital to implement hunger eradication, poverty reduction and economic development. The Transaction Office of the Social Policy Bank of Dien Chau district has disbursed 7,765 million VND to people in Dien Van, Dien Trung, Dien Yen, Dien Hong, Dien Thanh, Dien Ngoc, Dien Hanh, Dien Dong, Dien Thai, Dien Thap communes... to invest in raising buffaloes and cows, business, aquaculture, processing aquatic and seafood products, and small-scale trading. However, during the implementation process, the capital supply sometimes could not meet the demand, because there are still many people of working age in the district. The Bank has had flexible solutions, suitable to reality, gradually meeting the needs of the people. Mr. Lam Quan, Director of the Transaction Office of Dien Chau Social Policy Bank, said: "While the capital for implementing the job creation program is still limited, the bank takes advantage of the capital for job creation that has been recovered on schedule, organizes capital rotation for people in communes in need, and at the same time advises the District People's Committee to make timely disbursement decisions, creating good opportunities for people to invest in production and business. In the coming time, the Banking sector and the district will coordinate with relevant levels and sectors to promote training on agricultural, forestry and fishery extension in conjunction with lending for job creation to further promote the effectiveness of loan capital."

In the past 7 months, Con Cuong mountainous district has also disbursed 51 billion VND to 1,973 poor households and policy beneficiaries who have received loans, debt collection turnover reached 35 billion VND, outstanding debt is 216 billion VND with 11,000 borrowers. Notably, in the first 7 months of the year, 13 billion VND has been lent to 477 near-poor households. Anh Son district has loan turnover in 7 months: 54 billion VND, with 1,973 poor households and policy beneficiaries who have received loans, debt collection turnover reached 46 billion VND, outstanding debt reached 340 billion VND with 11,600 borrowers.

In the process of investing in lending capital to rural people to develop production, Party committees, authorities and organizations at all levels have always paid attention to and created favorable conditions for people to access loans. In the first 7 months of 2015, the whole province had over 300,000 poor households, near-poor households and other policy beneficiaries (through 8,050 savings and loan groups of entrusted organizations) accessing loans with an amount of 1,050 billion VND (total outstanding debt is currently 6,300 billion VND). With timely support of investment capital, many households in our province have escaped poverty and gradually become well-off and rich.

Due to the characteristics of poor and near-poor households, they lack both knowledge and experience in production and business, especially in mountainous districts and remote areas. Therefore, along with solving loan capital, it is necessary to combine it with transferring science and technology, helping to promote capital sources, thereby effectively recovering debt. This is the issue that requires more active participation of all levels, sectors and localities.

Hoang Vinh