The effectiveness of preferential loans in Tuong Duong

(Baonghean)Tuong Duong is a poor district of the province, with a poverty rate of over 60%. However, in recent years, thanks to preferential loans from the Vietnam Bank for Social Policies, many families have escaped poverty and become rich on their own land.

Three years ago, Mr. Lo Van Man's family was one of the poorest households in Con Muong village (Luu Kien, Tuong Duong). Thanks to a loan from the Social Policy Bank, his family has now escaped the poor household status of the commune. He borrowed 8 million VND to buy 2 pigs and plant xoan seedlings. Just over a year later, the family paid off all the debt to the bank and gradually accumulated savings.



Many households in Tuong Duong use preferential loans to develop the economy effectively.

In Con Muong village, there is also a family of Mr. Luong Van Thoong who currently has 11 pigs. Each year, he sells about 10 pigs, earning 50 - 60 million VND. "If the family did not borrow 15 million VND from the bank with preferential interest rates, it is unlikely that they would have escaped poverty now," Mr. Thoong affirmed. Currently, the entire Luu Kien commune has 585/922 households participating in loans. In 2011, the poverty rate of the commune decreased by 10%. Most people use loans for livestock and afforestation. That is why, up to now, the total herd of livestock and poultry in the commune has reached more than 18,000 heads, of which livestock accounts for half. The afforestation area of ​​the commune has continuously increased, planting 100-150 hectares each year. The area of ​​​​xoan dau in the commune is currently nearly 10,000 hectares.

Tam Quang Commune, the locality with the largest total outstanding preferential loan balance in Tuong Duong District. Talking about the amount of over 35 billion VND outstanding debt, Mr. Ho Viet Son, Chairman of the Commune People's Committee, said that seeing the large total outstanding debt made him both happy and worried. But no matter what, he was still happier because the large outstanding debt proved that people were aware of borrowing capital to do business to escape poverty and become rich. Currently, the whole commune has 1,480 households, through 17 groups participating in borrowing capital. Of which, the 2 entrusted organizations with the largest outstanding debt are the Women's Union and the Farmers' Union. Most of the households have used the capital for the right purpose, with high efficiency.

The proof is that in 2011, the poverty rate of Tam Quang commune decreased from 59.85% to 50.45%. The biggest driving force is still the preferential capital through the Social Policy Bank. A typical example of effective use of preferential loans is the family of Ms. Lo Thi Thiep, in Bai Xa village. In 2009, Ms. Thiep borrowed 38 million VND from the Social Policy Bank, bought 5 pairs of pigs and received land for forest planting. Currently, combined with her family's own capital, Ms. Thiep has built a cattle farm combined with forest planting. Currently, Ms. Thiep's family has 8 buffaloes, 14 pigs, 300 chickens and 4 hectares of forest. Or like Ms. Lo Thi Thu's family, Tam Bong village, Tam Quang commune, also borrowed 38 million VND and invested in building a pig farm. After the herd of pigs grew to over 30, she decided to invest in opening an animal feed dealership. Each year, her family has an income of 70-100 million VND.

Mr. Nguyen Canh Thao - Director of the Social Policy Bank of Tuong Duong district said: Compared to other mountainous districts in the province, Tuong Duong is the locality with the largest total outstanding debt. Currently, the total outstanding debt is 251 billion VND. Of which, 178 billion VND is capital for poor households, more than 2 billion VND for job creation, 2.5 billion VND to support ethnic minorities in difficulty... contributing to improving and enhancing the quality of life, changing the awareness and ways of doing business for thousands of ethnic minority households. Most of the households that borrowed capital used it for the right purpose and the bad debt rate was low, averaging about 0.2%.

Assessing the effectiveness of preferential loan use by people in the whole district, Mr. Vi Tan Hoi - Vice Chairman of the District People's Committee said: People in the district, especially poor households, are very excited when the State creates favorable conditions for borrowing capital and developing production. From this capital source, every year, Tuong Duong district has hundreds of households escape poverty, many households have also risen to become rich and become big owners of farms and shops. However, there are still many households who are afraid to borrow capital because they are afraid of ineffective production and business. In addition, there is the awareness, mentality of waiting and relying on the State and officials. For example, in Nhon Mai and Mai Son communes, there is currently a surplus of disbursed capital but many poor households do not dare to borrow capital. In order for poor households to boldly borrow capital to do business, the District People's Committee continues to organize propaganda to raise people's awareness, increase consultation, vocational training and guidance for people to do business. On the other hand, the district will mobilize the community to join hands to support and help poor families by contributing working days so that these poor households can effectively utilize their capital resources.

Pham Bang