Nghe An: Additional resources from the loan limit increase program
(Baonghean.vn) - In order to increase people's access to capital in all regions nationwide, since March 2019, the Vietnam Bank for Social Policies has officially increased the maximum loan level for poor households, near-poor households and households borrowing for socio-economic development in ethnic minority and mountainous areas.
The joy of models
In Thanh Mai commune (Thanh Chuong), the family of Ms. Nguyen Thi Huong in Truong Son hamlet (former Trung Son hamlet) is known by many people as an example of efforts to overcome difficulties to develop the household economy. In 2018, Ms. Huong borrowed 50 million VND to escape poverty to buy cows. In 2019, there was a policy to increase the limit, so she borrowed another 50 million VND to buy 2 buffaloes.
Ms. Huong said: The cow bought with a bank loan has given birth to 3 litters, after that, the family sold the calves to invest in a pig farm. Currently, in addition to 10 sows, the family's barn regularly has 60 - 70 pigs. From the sourcebank loans, the family invested in a closed-scale livestock farm, developed economy, provided a good income, and had the conditions to raise 3 children to go to school.
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| From the loan capital of the Social Policy Bank, the family of Nguyen Thi Huong in Truong Son hamlet, Thanh Mai commune (Thanh Chuong) borrowed to buy buffaloes and cows to develop the economy. Photo: Thu Huyen |
Ms. Tran Thi Nhu - Head of the Loan Group of Truong Son hamlet, who has been working with the Bank for Social Policies for nearly 18 years, connecting the poor and policy beneficiaries with the bank, said: Currently, the group has 44 members borrowing capital with an outstanding loan balance of more than 3 billion VND. Particularly, the program to increase the limit has 6 households with an outstanding loan balance of 600 million VND. In general, households borrowing capital in the area have effectively used their capital and developed their economy well. In addition to raising livestock, people borrow capital to grow tea, take care of and protect forests.
Leaving Truong Son hamlet, following the district bank staff, we entered Da Bia area, Thanh Mai commune. This is a disadvantaged area that enjoys Policy 135, a new economic zone of the commune. Ms. Pham Thi Xuan's family in Da Bia hamlet is a near-poor group of Thanh Mai commune.
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| The livestock farm of Ms. Pham Thi Xuan's family in Da Bia hamlet, Thanh Mai commune, Thanh Chuong. Photo: Thu Huyen |
In 2018, she borrowed 50 million VND from the Social Policy Bank to buy cows and in 2020, she was able to borrow another 50 million VND to invest in raising 20 breeding goats and 3 wild boars. Currently, the goats are growing well, with 16 sows about to give birth. As for the wild boars, they have given birth to 20, and the family is taking care of them to ensure they are ready to serve the upcoming Lunar New Year market.
Ms. Xuan said: "Thanks to the attention ofSocial Policy Bank, my family has access to long-term loans with preferential interest rates, and is guided on how to invest in profitable livestock farming. Currently, raising pigs, chickens, and goats brings in an income of more than 100 million VND per year. In addition, the family also grows tea. My husband and I are planning to build barns to expand livestock farming, so we hope the bank will continue to create favorable conditions for loans to develop the economy. We are grateful and appreciate the capital of the Social Policy Bank, helping poor people like us to improve our lives."
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| Officials of the Bank for Social Policies of Thanh Chuong district and the People's Committee of Thanh Mai commune visited the tea garden of Ms. Pham Thi Xuan's family. Photo: Thu Huyen |
In Thanh Chuong district, people not only borrow capital to develop livestock and tea cultivation, but also invest effectively in forest planting. Ms. Tran Thi Xuyen in hamlet 3, Thanh Thuy commune said: Gia Lua hill, located close to the border of Laos, was previously a bare hill, her father-in-law reclaimed it and later she and her husband took over.
Previously, the family only fenced and protected. In 2013, with a loan of 190 million VND from the Social Policy Bank, the couple planted forests. After only 5 years, the forest grew and yielded a harvest, each hectare brought in 50 million VND; with the money, I paid off the bank loan in full and continued to invest in planting acacia trees to develop the family economy and raise my children to go to school. The whole family was assured to focus on protecting the forest and keeping the border land.
New policy to support poor households
Immediately after the Board of Directors of the Social Policy Bank signed Decision No. 12/QD-HDQT dated February 22, 2019 on increasing the maximum loan amount and loan term for poor households, the General Director of the Social Policy Bank issued a document guiding the implementation of increasing the maximum loan amount and loan term for near-poor households, newly escaped poverty households and lending for socio-economic development in ethnic minority and mountainous areas.
Accordingly, from March 1, 2019, credit programs at the Bank for Social Policies include: Loan program for near-poor households; Loan program for newly escaped poverty households and Loan program for socio-economic development in ethnic minority and mountainous areas, with the Prime Minister stipulating the maximum loan amount not exceeding the maximum loan amount applicable to poor households in each period, the maximum loan amount is increased to 100 million VND/borrowing household without loan collateral.
Regarding loan terms, the Social Policy Bank increased the maximum loan term for the poor household lending program to 120 months. Accordingly, the near-poor household lending program has the same loan term as the poor household lending program, with the maximum loan term increased to 120 months.
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| People in Thanh Thuy commune (Thanh Chuong) develop forest economy thanks to bank loans. Photo: Thu Huyen |
Ms. Tran Thi Mai Hanh - Director of Thanh Chuong District Social Policy Bank said: Implementing the directive document of the superior, the unit has advised the head of the Board of Directors of the District Social Policy Bank to issue a document directing the entrusted units at the district level, the People's Committees of communes and towns to review eligible subjects with demand for loans to increase the level for 3 programs: poor households, near-poor households, and households that have just escaped poverty.
The unit held a meeting with 4 units receiving the trust at the district level (farmers' association, women's association, veterans' association and youth union) and agreed to coordinate and direct the commune-level units to carry out the work of reviewing and making a list of households that are eligible and in need to send to the district Social Policy Bank. The lending process is strictly assessed, evaluating the reasonableness, appropriateness and effectiveness of the project proposed by the borrower to borrow capital.
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| With loans from the Social Policy Bank, many families have boldly built many highly effective economic models. Photo: Thu Huyen |
At the beginning of the implementation, some borrowers did not have specific information about the loan to increase the level, some group leaders did not understand clearly about the loan to increase the level, they were afraid that lending large amounts of money to poor and near-poor households would make it difficult to collect debts, so very few households were able to access additional loans. However, after the district Social Policy Bank vigorously implemented propaganda work, borrowers were excited to accept this policy, and the number of households applying for loans to increase the level to develop the economy increased. Some communes such as Thanh Ha, Thanh Xuan, Thanh Mai, Thanh Lam... implemented the loan to increase the level well.
Up to now, many localities in Nghe An have effectively increased their lending limits. Typical examples are the districts of Dien Chau, Do Luong, Quynh Luu, Yen Thanh, Con Cuong... In Thanh Chuong district alone, the results of the increased lending limit as of August 31, 2020 were 428 new loans with an amount of 39,947 million VND; 259 loans increased with an additional loan amount of 12,375 million VND, the outstanding balance after lending was 24,030 million VND. The total number of households lending was 687 with an amount of 64,699 million VND, the outstanding balance after lending was 63,977 million VND. There were 462 households with a maximum loan of 100 million VND with an amount of 46,200 million VND.
The increase in the maximum loan amount for the program for poor households, near-poor households, newly escaped-poverty households and households borrowing for socio-economic development in ethnic minority and mountainous areas of the Vietnam Bank for Social Policies aims to increase the ability to access capital for people in all regions. This is one of the solutions to, together with other types of credit institutions in the banking sector, contribute to pushing back informal credit. It is expected that from now until the end of 2020, the Nghe An branch of the Vietnam Bank for Social Policies will continue to increase the loan amount for beneficiaries under CV 866 who need to use loans up to 100 million VND.
