Economic efficiency from loans from the Bank for Social Policies

(Baonghean) Mr. Nguyen Cong Duong - Deputy Director of the Provincial Social Policy Bank, Member of the Provincial Committee for the Advancement of Women, said: By December 31, 2011, the Social Policy Bank had provided loans for 1,265 job creation projects, attracting 5,560 new jobs, of which female workers accounted for 40.1%, the number of projects owned by women was 330 projects; disbursed VND 5,171 billion to 332,600 borrowers, of which the Women's Union at all levels received VND 1,961 billion (accounting for 38%), of which 105,758 female households received loans (accounting for 32%).

In general, projects led by women have promoted capital efficiency, paid capital on time, the overdue debt rate (0.22%) is lower than the resolution (0.8%). After 9 years of coordination, it is possible to mention districts that have done well in disbursing loans such as: Dien Chau, Quynh Luu, Con Cuong, Cua Lo...

Thanks to a loan from the Social Policy Bank, Ms. Nguyen Thi Thuy's family built a freezer, creating jobs for more than 100 female workers.

As one of the localities with many good practices, bringing effective loans to women, recently, the Women's Union of Cua Lo Town has created conditions to help women borrow capital for business, develop production to increase income, improve living standards by receiving capital entrustment from the Social Policy Bank on the basis of establishing groups and women's groups to borrow savings in the community.

By December 2011, the Town Women's Union had mobilized more than 33 billion VND for 1,650 members to borrow. In addition to the capital entrusted by the Social Policy Bank, the Town Women's Union also maintained and developed 225 savings groups with 4,500 members, raising the total capital to 11,353 million VND for 1,645 women to borrow without interest or with low interest rates to develop the family economy. After receiving loans, women used the capital to develop livestock farming, small business... Ms. Nguyen Thi Khac, a poor household in block 9, Nghi Tan ward, was formerly a poor family, with nothing valuable in the house, so she did not dare to borrow from the bank because she did not meet the conditions, and the interest rate was high.

But since she got a loan from the Social Policy Bank through the Women's Union, she no longer had to worry much. In 2001, the Union lent her 2 million VND, and she decided to start a formwork rental business. Working hard and spending frugally, after 3 years she was able to repay the debt to the Bank on time. Up to now, she has assets worth hundreds of millions of VND, bought a vehicle to transport materials for rent, and regularly has 7-10 workers in the house, with a salary of 1.5 to 2 million VND/person/month."

In addition to capital from the Social Policy Bank, women can also borrow capital from the TYM Project sponsored by Belgium with an interest rate of 1%. Although the loan amount is not too large, it is very meaningful for poor women. Ms. Nguyen Thi Thuy (Hai Giang 2 block, Nghi Hai) shared: "In the past, my family was very poor, life for my husband, wife and 4 children was extremely difficult. With the attention of the Committee for the Advancement of Women and the Women's Union of the town, I was given the opportunity to borrow capital from the TYM Project and the Social Policy Bank of Vietnam for about 10 million VND. With the advantage of the coastal area, I invested in the frozen warehouse business, creating regular jobs for over 100 female workers. I have risen out of poverty, so I have to help poor and disadvantaged women."

In order to effectively lend and support capital for poor women, in recent times, the Women's Union at all levels in the province has organized many training courses on "Supporting women in economic development, creating jobs, increasing income"; at the same time, regularly urging, checking and monitoring the activities of loan groups at the grassroots level to ensure that any poor woman has access to capital.

Also according to Mr. Nguyen Cong Duong, in the coming time, the Social Policy Bank will continue to increase capital by 15%/year (about more than 1 trillion VND), focusing on investing capital for students, women, and supporting poor households in housing. Prioritize projects led by women; coordinate with Women's Unions at all levels to review the list of poor women and families in difficult circumstances to create conditions for them to borrow preferential loans, create jobs, and improve the lives of women.

Thanh Hien