Effectiveness of entrusted capital for lending to the poor
(Baonghean) - Identifying capital as an important factor in creating conditions for members to develop the economy, Farmers' Associations at all levels have done a good job of receiving loans from the Bank for Social Policies for the poor and other policy beneficiaries through capital from the Bank for Social Policies. Thanks to that, members have access to preferential capital sources, access to science and technology, business methods, proactively rise up to escape poverty, and stabilize their lives.
Escape poverty from policy loans.
Coming to My Dinh hamlet, Chau Dinh commune (Quy Hop), everyone knows about the economic model of Mr. Chu Quoc Tru's family. Currently, the model of growing fruit trees combined with raising livestock of Mr. Tru's family is considered effective, many people visit to learn from the experience.
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| People in Dien Ngoc commune (Dien Chau) borrow capital from the Vietnam Bank for Social Policies to invest in seafood processing and develop household economy. Photo: Viet Phuong |
Mr. Tru said that in the past, his family had many children (5 children) but was purely agricultural, mainly depending on corn and cassava, so life was difficult. Realizing that the land in Chau Dinh commune was favorable for growing fruit trees, he discussed with his wife and children, and some households pooled together to build a nursery. After success, he was given a loan by the District Farmers' Association, entrusted with capital from the District Social Policy Bank to invest in growing oranges. With 96 million VND in loan capital, plus money from brothers and friends, he invested in planting nearly 5 hectares of oranges and tangerines. In the fourth year, the trees grew well, yielding the first fruit crop, with a yield of 5 tons/ha; After deducting expenses, the family earned nearly 1 billion VND. From this amount, the family was able to repay the bank loan on time and continue to invest in the next crop and increase the planting area.
“Last year was the second harvest for my family, earning over 2 billion VND from orange and tangerine trees and nearly 100 million VND from livestock,” Mr. Tru shared.
Currently, the capital from the Social Policy Bank has helped thousands of farming households in Quy Hop have capital to do business, create stable jobs, develop the economy, and escape poverty sustainably. Typical examples include Mr. Chu Quoc Tru's household in My Dinh hamlet, Chau Dinh commune with a model of growing oranges, tangerines and raising livestock; Mr. Truong Dinh Xuong's household in Vac hamlet, Tam Hop commune with a model of growing sugarcane and raising livestock; Mrs. Nguyen Thi Van's household in Na Xen hamlet, Chau Quang commune with a model of raising pigs and chickens...In Nghia Dan district, since 2013, Ms. Vi Thi My's family (Mon hamlet, Nghia Lac commune) has been able to borrow 20 million VND from the Social Policy Bank to buy a breeding buffalo. From this capital source, combined with her perseverance and hard work, in 2017, Ms. My's family was a typical household that escaped poverty in Nghia Lac commune.
Ms. My shared: After 3 years of borrowing money, her family's buffalo herd had 4 buffaloes. She sold 1 buffalo to pay off the debt to the Social Policy Bank. In early 2017, she sold 2 buffaloes to contribute money to build a spacious house. I still have 1 male buffalo to continue production. Now I have food and savings.
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| Nghi Loc Policy Bank transaction office disburses capital. Photo: Viet Phuong |
Mr. Le Hong Tuyen - Director of the Transaction Office of the Nghia Dan District Social Policy Bank said: With the responsibility of accompanying the poor, the District Social Policy Bank has always played a good role as a bridge to help poor households, near-poor households, newly escaped poverty households and other policy beneficiaries have access to preferential credit capital to develop production, create jobs, improve living conditions, and escape poverty. In order for capital to reach beneficiaries effectively, the District Social Policy Bank has closely coordinated with associations to build trust contracts, review and identify policy beneficiaries for loans. From there, a network of savings and loan groups was formed in each village, hamlet..., up to now, from the Farmers' Association channel alone, there is a total outstanding debt of 106 billion VND, 4,818 households with outstanding loans and 100 savings and loan groups in operation, of which 96 savings and loan groups are classified as operating well, accounting for 96%. These savings groups have brought preferential loans to the right beneficiaries.
According to the synthesis, by March 31, 2018, the total outstanding debt of the Provincial Social Policy Bank reached 7,485 billion VND, of which the Farmers' Association at all levels received entrusted loans of over 2,272 billion VND, of which the programs accounted for a high proportion such as loans for poor households (23.4%), loans for near-poor households (25.6%), and loans for households escaping poverty (13.2%). Some districts have high outstanding debt such as Dien Chau 194.7 billion VND; Yen Thanh 184.5 billion VND; Thanh Chuong 169.2 billion VND; Do Luong 124.7 billion VND... Currently, there are 4,185 households with outstanding debt. Overdue debt accounts for 0.18%, some units have no overdue debt such as Quy Hop, Hoang Mai Town, Thai Hoa Town.
In recent times, the association at all levels has always focused on improving the quality of entrusted credit, preventing the phenomenon of encroachment on loans and appropriation of entrusted capital during the implementation process. The work of evaluating loans ensures the right subjects, and borrowers use capital for the right purposes. The source of loans for job creation has operated effectively, with outstanding loans increasing by 4.5 billion VND compared to the beginning of the year, and overdue debts decreasing.
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| With a loan from the Social Policy Bank, Mr. Luong Huu Phuong in Tan Tho hamlet, Nghia Tho commune (Nghia Dan) has escaped poverty. Photo: Viet Phuong |
According to the assessment of the Provincial Social Policy Bank, through the entrustment activities with political and social organizations, including the Farmers' Association, it has contributed to bringing credit capital to the right beneficiaries; households borrowing capital use capital for the right purpose and effectively. The above credit capital has helped 75,778 farming households access preferential loans. Many farmer association member families have solved financial problems for their children's education, renovated clean water and sanitation facilities, improved living conditions, improved quality of life and developed livestock, farming, and jobs, etc., thereby not only eliminating poverty for themselves but also supporting and helping many other households to escape poverty and rise up.
“Through the effectiveness of the trust activities, the position and role of the Association at all levels have been increasingly enhanced, and members and farmers have more confidence in their organization. In the coming time, we will continue to closely coordinate with the bank to strengthen the activities of the Savings and Credit Groups, and at the same time strengthen inspection and supervision to improve the quality of trust services,” added the Chairman of the Provincial Farmers’ Association.
