Near poor households get preferential loans

Prime Minister Nguyen Tan Dung has just signeddecisionon credit for near-poor households. Accordingly, near-poor households will be entitled to preferential loans from the Government. This decision will take effect from April 16, 2013.

Many people have escaped poverty thanks to preferential capital from the Government.
Photo VGP

The Prime Minister assigned the Vietnam Bank for Social Policies to provide loans to near-poor households to meet capital needs for production and business, contributing to the implementation of social security policies and sustainable poverty reduction.

The loan amount for near-poor households is agreed upon by the Social Policy Bank and near-poor households but does not exceed the maximum loan amount for production and business purposes applicable to poor households in each period.

Regarding interest rates, the Decision clearly states: The lending interest rate is 130% of the lending interest rate for poor households prescribed in each period; the overdue debt interest rate is 130% of the lending interest rate. The loan term is agreed upon by the Social Policy Bank and the near-poor households borrowing capital in accordance with the production and business cycle and the customer's ability to repay the loan.

Conditions, documents, procedures and processes for lending to near-poor households are the same as for lending to poor households.

Also in this decision, the Prime Minister requested the Social Policy Bank to develop an annual capital plan to lend policy credit programs, including loans for near-poor households, and submit it to competent authorities for approval.

Ensure sufficient capital for near-poor households to borrow preferential loans

It is known that there are currently more than 1.5 million near-poor households nationwide, and the rate of households falling back into poverty each year is still high. These are “fragile” groups whose economic potential is still weak and only need one epidemic or one natural disaster to make them fall back into poverty. According to experts in the field of hunger eradication and poverty reduction, one of the main causes of falling back into poverty is that near-poor households lack capital to invest in production.

Speaking to reporters from the Government Portal, Mr. Nguyen Van Ly, Deputy General Director of the Vietnam Bank for Social Policies, said: The need for preferential loans of near-poor households is no different from that of the poor. However, in previous years, due to the country's economic conditions not allowing it, preferential loans for the poor were only met.

The Prime Minister’s approval of the credit policy for near-poor households will help near-poor households have capital to invest in production, business, economic development, and not fall back into poverty. This result will greatly contribute to the implementation of current social security policies.

Mr. Nguyen Van Ly affirmed that, in carrying out the tasks assigned by the Prime Minister, first of all, the Vietnam Bank for Social Policies will try to ensure sufficient capital to meet the borrowing needs of near-poor households. At the same time, the Bank's branch system will deploy disbursement to the right subjects, with the most favorable procedures, so that near-poor households can quickly access preferential capital from the Government to invest in production and business, and escape poverty sustainably.

According to (Chinhphu.vn) - LT