Get rich from trust loans
With the loan capital from the Social Policy Bank system entrusted through the Youth Union, many young people have escaped poverty and become rich legitimately in their homeland. However, the actual need for capital and how to use capital effectively for young people is still an unsolved problem...
(Baonghean) -With the loan capital from the Social Policy Bank system entrusted through the Youth Union, many young people have escaped poverty and become rich legitimately in their homeland. However, the actual need for capital and how to use capital effectively for young people is still an unsolved problem...
Variety of models
With an initial capital of 30 million VND borrowed from the Social Policy Bank (CSXH), Mr. Nguyen Ngoc Quang (Linh Son - Anh Son) has found a new direction in economic development. Realizing that in the commune, the wedding tent rental service is still fragmented. "On a good day", in the commune there are 2-3 weddings at the same time, it is impossible to find a "decent" wedding tent, so he decided to invest in 3 sets of wedding tents, along with wedding services such as speakers, master of ceremonies, "village singers", and food. The full-package service is not only popular with the youth in the commune but also "ordered" by neighboring communes. Having just returned from setting up a wedding tent for a wedding in hamlet 5, Mr. Quang smiled and said: "If I didn't have the capital loan of 30 million VND, I don't know when I would be able to hold my head up high."
Currently, Linh Son Commune Youth Union manages 5 loan groups with a total outstanding debt of more than 5 billion VND. The monthly commission from the entrusted capital is 1.5 million VND, which is an important fund to maintain the activities of the Youth Union. Mr. Tran Van Son - Secretary of the Commune Youth Union said: "Every year when we have capital, we, together with the Women's Union and the Veterans Association, will consider which subjects will be able to borrow this time. We will give priority to households with more difficult circumstances but who know how to do business." In addition to the loan groups in Linh Son Commune, the loan groups in Thanh Son, Binh Son, and Tuong Son Communes all manage well the entrusted capital for poor households and policy subjects, with a total annual outstanding debt of 4 - 5 billion VND, contributing to the total outstanding policy capital debt through the youth "channel" of the whole district of 33 billion VND. Mr. Le Van Can - Director of Anh Son District Policy Bank said: "Young people dare to think, dare to do and are very sharp, so entrusting loans to young people to manage has promoted the efficiency of capital. In the near future, we will have a capital package of 100 million VND for a borrower in the credit program to create jobs."
Like Anh Son, Quynh Luu district is the unit with the highest total outstanding debt in the province with 75 billion VND. The Standing Committee of the District Youth Union has directed the Youth Union at all levels to guide poor members to borrow capital for the right purpose, investing in plants, animals, and industries that communes, towns, villages, and hamlets have strengths in. Thanks to that, overdue debt in the area accounts for only 0.1%.
From the credit program "Solving jobs for youth" with an amount of 100 million VND, Mr. Chu Thien Quang in Quynh Vinh (Hoang Mai town) found a way to escape poverty with a 4-hectare garden - pond - barn - forest farm model. He said: "Wandering from North to South with the job of selling breeding cows, struggling but still not having enough to eat, moving here and there and not being able to stabilize family life, so I thought, why not get rich on the land my ancestors left me. With a large land, at first I planted a few dozen longan and lychee trees, and raised a few dozen goats. Later, when I had capital, I expanded to plant more acacia, increasing the herd to 200 goats and hundreds of cattle. Now the total annual income is more than 200 million VND, creating seasonal jobs for dozens of workers in the area."
Economic development model of Mr. Chu Thien Quang (Quynh Vinh, Hoang Mai Town).
To give young people access to capital
Currently, the Youth Union of the whole province is managing 12 credit programs with a total outstanding debt of 524,047 billion VND, with 785 loan groups, helping the Social Policy Bank manage capital well, there is almost no bad debt, overdue debt has decreased by 0.204% compared to 2005. However, the number of young people in rural areas who have access to social policy loans is not much. Mr. Nguyen Ngoc Quang (Linh Son - Anh Son) said: "In the near future, I want to develop a wedding hall rental service in 2 neighboring communes, but the problem is that I do not have enough capital. If this service develops, it will create jobs for about 10 workers in the area."
Mr. Hoang Van Thong's shrimp breeding model in Quynh Bang is known for its "profitability" because of its very scientific breeding method. Every year, in addition to the initial cost of the breed, pond cleaning and disease prevention, he earns about 150 million VND. However, when asked about the initial capital, he said: "A few years ago, I only borrowed 8 million VND from the poverty reduction fund and I have paid it back a long time ago. If I could borrow from the Youth Employment Fund in the aquaculture sector, I would create jobs for many more workers."
In addition to the hunger eradication and poverty reduction program, there are other credit programs for young people to develop the economy, notably the Employment Program. If the youth's production and business model is good, profitable, and creates jobs for many workers in the area, they will have the opportunity to access this loan source. However, in reality, most young people find it very difficult to access because the youth employment credit program has the lowest outstanding debt among the 12 credit programs entrusted by the youth from the Policy Bank. Currently, only 7 youth models have access to loans in 3 districts: Quynh Luu, Hung Nguyen, and Anh Son.
According to Mr. Dang Minh Chinh, Deputy Head of the Rural - Urban Youth Department: "Every year we allocate capital (through the Policy Bank) to the district, through the proposal and consultation of the Youth Union at all levels in the district to disburse loans to youth. However, very few districts can complete the required documents." Thus, the attention and consultation capacity of the grassroots Youth Union at all levels is very important for local youth to access loans.
In addition, in the management of capital entrusted from the Policy Bank, the Youth Union must be the ones to take on the roles of group leaders and deputy group leaders in savings and loan groups. However, currently most of the group leaders of savings and loan groups are members of the Women's Union, so the dissemination and propaganda to the Youth Union members who can benefit when they have the need and meet the conditions is very limited.
Mr. Tran Khac Hung - Deputy Director of the Provincial Social Policy Bank, is concerned: "The Youth Union cadres often change, making it difficult to manage debt collection." Therefore, first of all, the Youth Union cadres must create trust through the enthusiasm, quickness and daring spirit of the youth. When transferring the generation of Youth Union cadres, it is necessary to train the new team to be proficient in professional skills to improve capacity and prestige. Only then can the youth access entrusted loan sources, have the conditions to develop the economy, and get rich on their homeland...
Article and photos: Thanh Nga
