The effectiveness of preferential credit for poor households and policy beneficiaries in Quy Hop district
(Baonghean.vn) - After 20 years of development, the Quy Hop District Social Policy Bank, with its mission of implementing policy credit for the poor and other policy subjects according to Decree No. 78/2002/ND-CP, has achieved many remarkable results; thousands of households have risen out of poverty and become rich from policy credit capital.
Local support and "extended arms"
Up to now, in Quy Hop town, there have been 16 policy credit savings and loan groups; this is the "extended arm", an important bridge between the Social Policy Bank and borrowers, contributing to helping loan sources reach the right subjects in a timely, convenient, public and democratic manner.
Mr. Nguyen Van Suu - Chairman of the Town People's Committee, also a member of the Board of Directors of the District Social Policy Bank, said: The total outstanding debt of 6 credit programs has reached 18.45 billion VND, with 340 borrowers, especially, no overdue debt. If in 2010, the poverty rate in the area was still 9.57%, after 10 years, that number has decreased to 3.06%.
To achieve that result, according to Mr. Suu, the local government plays a very important role. The town People's Committee has coordinated well with the Vietnam Bank for Social Policies, linking policy credit with programs and policies on hunger eradication, poverty reduction, and ensuring social security in the area; accurately identifying poor households and policy beneficiaries in need of policy credit loans; pointing out difficulties and limitations in organizing and implementing credit programs in the area to find effective solutions, especially for the work of collecting and handling overdue debts.
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Staff of the People's Credit Fund of Quy Hop district advise people on ways to develop the economy and effectively promote loan capital. Photo courtesy of Thu Huyen |
“We also direct the poverty reduction committee, the entrusted associations and unions, and the block leaders to regularly grasp and synthesize the annual credit capital needs to develop a credit plan to submit to the Government.People's Credit Funddistrict. Based on the allocated capital, allocate capital to each block, strictly manage capital sources and effectively implement credit policy programs. At the same time, monitor and help borrowers use capital for the right purpose and effectively; urge them to pay principal and interest fully and on time," said Mr. Nguyen Van Suu.
In particular, to help households use loans effectively, the Town People's Committee has coordinated to organize training and transfer of livestock and crop farming techniques to borrowers. From there, it has created a spread and attracted borrowers to change the structure of crops, livestock, and seasons, gradually getting used to commodity production, using capital for the right purposes, many households with high incomes have escaped poverty and gradually become rich.
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Developing farm economy from loans from the Vietnam Bank for Social Policies. Photo courtesy of Thu Huyen |
Established in 2003, after 20 years of development, the Social Policy Bank of Quy Hop district has achieved many remarkable results. Up to now, 21 fixed transaction points have been built in 21 communes and towns; thereby, enhancing access to social policy credit services for the poor and other policy subjects, reducing costs and travel time, ensuring democratic and public social policy credit activities with the method of "transactions at home, disbursement and debt collection at the commune".
The entrusted organizations are the Farmers' Association, Women's Union, Veterans' Association and Youth Union, working closely with the Vietnam Bank for Social Policies to manage preferential loans in the area. By June 30, 2022, the total outstanding loan balance reached 610,615 billion VND, accounting for 99% of the total outstanding loan balance in the district. Credit quality has been increasingly improved, many organizations have promoted their strengths in gathering forces, guiding loan evaluation, managing, urging, inspecting, supervising the use of loans, propagating, and mobilizing members to comply with regulations on debt repayment, interest payment, and savings deposits, such as the Farmers' Association of Chau Dinh, Nghia Xuan, and Dong Hop communes; Women's Association of Chau Thanh, Minh Hop communes and towns...
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| Policy credit capital for investment in production development, creating jobs for workers. Photo: Thu Huyen |
In particular, to better meet the needsloan demandIn the area, immediately after its establishment, the unit actively mobilized capital from organizations, individuals and the local budget. Thanks to that, it has created significant resources to meet the borrowing needs of poor households and other policy beneficiaries in the district. By June 30, 2022, the total policy credit capital managed by the Social Policy Bank of Quy Hop district reached 618 billion VND, an increase of more than 612 billion VND and 105.6 times higher than the first day of establishment, the average annual capital growth rate reached 19.6%.
Escape poverty and get rich from policy credit
By effectively providing loans to the poor and other policy beneficiaries, the unit's activities have significantly contributed to the successful implementation of the poverty reduction target, ensuring social security and building new rural areas; especially, prioritizing support for ethnic minorities and disadvantaged areas.
From the two initially handed over credit programs, namely loans for poor households and loans to support job creation with a total outstanding debt of VND 5,775 billion, after 20 years of operation, up to now, 19 credit programs assigned by the Government and a number of programs from capital sources entrusted locally have been implemented; monitoring and managing over 12,438 borrowing households, accounting for more than 37% of the total number of households in the district. Total lending turnover over the past 20 years has reached VND 1,830 billion, with 72,662 poor households and policy beneficiaries receiving loans; the investment level for borrowers has increased from VND 3 million/household in 2003 to VND 100 million/household in 2022.
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| Members of the savings and loan group in Chau Thai commune (Quy Hop) look at loan information at the commune People's Committee headquarters. Photo: Thu Huyen |
Fromcredit sourcesThe policy has helped nearly 10,000 households overcome the poverty line; thousands of workers have stable jobs and loans to work abroad; thousands of households have capital to invest in production, business, build clean water and sanitation works that meet standards, renovate or repair houses. In particular, more than 6,600 poor students have received loans to study; more than 2,800 ethnic minority households with special difficulties have capital to develop production, feel secure in their land and villages in remote areas. It can be affirmed that social policy credit is a "midwife" that supports poor households and policy beneficiaries to escape poverty, integrate into the community and gradually become rich.
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People of Chau Dinh commune (Quy Hop) have risen above poverty and become rich by developing livestock farming. Photo courtesy of Thu Huyen |
Along with lending, capital recovery work has also been carried out very well, contributing significantly to creating capital sources for revolving loans for policy credit programs, promptly meeting capital needs, and at the same time significantly reducing pressure on capital provision from the Central Government. The district has also directed communes to establish debt collection teams in communes with high overdue debts compared to the general level to focus on urging the collection of outstanding overdue debts. Up to now, the total outstanding overdue debt and frozen debt at the district's Social Policy Bank is 212 million VND, accounting for 0.034% of the total.credit balance,sharply decreased compared to the time of handover and currently in the area there are 19 communes with no overdue debt; in particular, capital sources are deployed to the right subjects, borrowers use capital for the right purposes, there is no phenomenon of embezzlement, capital appropriation, borrowing on behalf of others, or borrowing on behalf of others.
Lending activities still face many difficulties in terms of capital sources and maximum loan amounts for some items. However, after 20 years of operation, we have drawn lessons to continue to effectively implement policy credit programs, with the motto of "understanding the people's hearts and serving wholeheartedly".
Accordingly, we will continue to improve the quality of social policy credit programs, in line with the policies and orientations of each locality on economic restructuring and agricultural and rural development. Along with focusing on helping households escape poverty, we will also pay attention to investing in effective production and business models that attract more workers, develop craft villages, and OCOP products and services in the area...
