Promoting the effectiveness of policy loans in Quy Hop district

Escape poverty thanks to policy loans

Born into a poor farming family in Ban Xan hamlet - a difficult area of ​​Chau Thai commune, Vi Van Chung chose his hometown land to start a business. In the early days, when he first started raising breeding cows, due to limited capital and experience in raising cattle, he encountered many difficulties, and it seemed that his dream of becoming a farm owner had to be abandoned. Then in 2015, he wasVietnam Bank for Social Policiescreating conditions, he borrowed 30 million VND from the near-poor household program to raise livestock; in 2017, after paying off old debts and being facilitated by Chau Thai Commune Youth Union to join the Breeding Cow Breeding Club, being trained in breeding techniques to develop the economy, young union member Vi Van Chung boldly borrowed 50 million VND to renovate the hill garden to make barns, and buy breeding cows to raise.

Thanks to his diligence, hard work, and diligent care, the family initially had only 2 breeding cows, but now has maintained a total of 12 breeding cows. In addition, Mr. Chung has also invested in raising more than 40 goats and planted 5 hectares of forest. Mr. Chung added that every year, he earns over 120 million VND from farming and raising livestock.

The herd of cows of Mr. Vi Van Chung's family in Chau Thai, Quy Hop was invested in raising with a loan from the Vietnam Bank for Social Policies.

According to Mr. Lo Van Nguyen - Deputy Secretary of Chau Thai Commune Youth Union, not only taking care of economic development, Mr. Vi Van Chung is also an exemplary leader in the activities of the Commune Youth Union, local activities, especially innew rural construction movement, as well as actively supporting local fundraising movements.

In recent years, implementing the sustainable poverty reduction program, the Youth Union members and youth of Quy Hop district in general and the Youth Union members and youth of Chau Thai commune in particular have achieved many positive results. The exploitation and management of preferential credit capital through the trust activities with the District Social Policy Bank has helped many Youth Union members and youth escape poverty, create jobs, increase income, thereby creating many typical examples of economic development for high income, gradually eliminating hunger and reducing poverty sustainably. However, in order to create conditions for youth to have more capital to invest in economic development, all levels and sectors need to pay attention, especially the Social Policy Bank, to create conditions for Youth Union members and youth households to continue to borrow capital to expand the scale of development.

Members of the savings and loan group in Chau Thai commune, Quy Hop district look at loan information at the commune People's Committee headquarters. Photo by Viet Phuong

Currently, 70-80% of the beneficiaries of the Social Policy Bank are the poor and the policy beneficiaries are members of farmers, women, youth unions, and veterans. The socio-political organizations participating in the transfer of this policy credit capital are both a bridge and can carry out social supervision, criticism, and socialization.

In Quy Hop district, not only the youth union but also other associations and organizations have made good use of the loan capital from the Social Policy Bank. The capital channels of savings and loan groups managed by associations and organizations have helped credit capital not only reach the right address but also spread the spirit of mutual love and affection in the community. A typical example is the household of Vi Van Khan in Ban Muong hamlet, Chau Thai commune - Head of the group Vi Thi Thuy under the Farmers' Association. Mr. Khan is a poor household, in 2018, his family was able to borrow 50 million VND to plant acacia forests. Currently, the family has 3 hectares of acacia, 6 cows, the family economy is developing, helping to raise children to study properly.

Many Quy Hop farm economic models were built from loans from the Vietnam Bank for Social Policies. Photo by Viet Phuong

Or Mr. Truong Van Cong's household in Thang Loi hamlet, Van Loi commune is a near-poor household. In 2020, he borrowed 50 million VND from the Veterans Association to buy breeding cows. Thanks to hard work, learning from practical experiences, books, newspapers, and encouragement from the commune's Veterans Association, he has more determination to develop the economy; the cows are well raised, currently the family has 9 cows and a barn.

Pay attention to capital sources and meet the needs of the subjects.

In recent years, the Social Policy Bank of Quy Hop district has advised the Board of Directors of the Social Policy Bank to prioritize lending to poor households, near-poor households, and households that have just escaped poverty; especially lending to production and business households in difficult areas, and prioritizing a number of other credit programs for communes that have reached the new rural target. To ensure the loan capital source, the unit has proactively increased the capital source to the maximum to serve the people in the area. The social policy credit capital has contributed tonational poverty reduction targetEvery year in Quy Hop district, the poverty rate at the end of 2021 was 15.41%; the near-poor rate was 16%. The number of households accessing policy credit capital increased quite well, accounting for 36.7% of the total households in the district, with an average outstanding debt of 47.9 million VND per household.

In 2021, social policy credit capital provided loans to 3,759 households. Social policy credit activities have made an important contribution to effectively implementing the policies, goals and tasks set by the Party and the State on sustainable poverty reduction, new rural construction, focusing on human resource development, ensuring social security, political stability, security - defense and socio-economic development.

Mr. Chu Quoc Tru's family farm in My Dinh hamlet, Chau Dinh, Quy Hop. Photo by Viet Phuong

At the same time, focus on accelerating the disbursement of credit programs when notified to meet the production and livestock needs of poor households and other policy beneficiaries. Focus on handling and promptly recovering debts due in 2022, continue to maintain stable and sustainable credit quality, coordinate with local authorities and associations at all levels to handle difficult cases in the debt repayment process, ensure the overdue debt rate is from 0.01% or less...

Since the beginning of the year, the total capital has reached over VND 581,384 billion, the total outstanding debt has reached VND 581,332 billion, the growth rate has reached 0.28%. Mr. Nguyen Thanh Hai - Director of the Social Policy Bank of Quy Hop district said: This year, the branch strives to complete the target of mobilizing the local budget of VND 500 million; increasing capital and outstanding debt by 8-10% compared to 2021; ensuring stable credit quality, overdue debt ratio of 0.01%; completing 100% of the capital mobilization plan on all channels, capital use plan assigned by the Director of the Provincial Social Policy Bank.

Officers of the People's Credit Fund of Quy Hop visited the family of Ms. Vi Thi Dao in Thai Quang hamlet, Chau Thai commune, Quy Hop - an effective loan borrower in the area. Photo by Viet Phuong

Along with that, coordinate with organizations at all levels and local authorities in handling households that leave the locality, households that do not pay interest, households with newly arising overdue debts as well as long-term overdue debts to continue to strengthen and improve credit quality in the area...

In addition to continuing to advise and direct the effective implementation of Directive No. 40 of the Secretariat on strengthening the Party's leadership over social policy credit in the district, we advise the Head of the Board of Directors of the District Social Policy Bank to assign credit program planning targets to communes and towns immediately after receiving the capital source notification from the Director of the Provincial Social Policy Bank, well meeting the loan needs of poor households and other policy beneficiaries.

Director of the Social Policy Bank of Quy Hop district Nguyen Thanh Hai shared