Using loans from the Bank for Social Policies in Nghia Dan

(Baonghean) -Over the years, Nghia Dan has implemented many measures to sustainably eliminate poverty. One of the important and effective measures is to use loans from the district's Social Policy Bank to build economic models suitable to local conditions. From here, tens of thousands of households have received loans and had the opportunity to escape poverty.

Dinh Thi Yen's family in Hamlet 1, Nghia Yen Commune, was formerly a poor household, living in a dilapidated house. 7 years ago, she did not dare to think that one day she would be able to build a house and buy a motorbike if she had not borrowed capital for production from the District Social Policy Bank. Thanks to the loan of 20 million VND and guidance on investing in breeding buffaloes, from one mother buffalo, she had 4 more baby buffaloes. Thanks to the money from selling buffaloes, her family was able to save money to build a house and buy household items. With the capital, she invested in growing watermelons. Up to now, the family not only raises buffaloes, chickens, and pigs, but also has 1 hectare of watermelons, earning 50 million VND per year.

Ms. Dinh Thi Yen happily showed us the house she lives in and shared: “In the past, I didn’t even dare to dream, I was so poor. I was scared to borrow money to buy a buffalo, but with the encouragement of the neighborhood and commune, I was brave. Now my husband and I are trying to save money from raising livestock and growing crops to send our children to school.” Like Ms. Yen’s family, many poor households who have borrowed money are also very excited because the loan from the Social Policy Bank is a lifeline to help them escape poverty.



Vegetable growing model to escape poverty in Dong Truong hamlet, Nghia Hoi commune

With more than 70% of households engaged in agricultural production, the guidance of people on investing in planting trees and raising livestock in accordance with the local situation is focused on. Many programs have really had a widespread effect, many crop projects have been attached and become poverty-escape trees in Nghia Dan such as sugarcane, rubber or orange. Many highly effective projects have been replicated such as the high-yield sugarcane planting project in Nghia Yen and Nghia Hong communes implemented by the district Social Policy Bank; the 50 million VND watermelon field project of the Farmers' Association of Nghia Son commune; the rubber tree planting project in Nghia Lac and Nghia Yen.

Since then, farmers have focused on intensive investment and the application of advanced science and technology, so crop productivity has continuously increased. Nghia Yen commune is a typical example in developing poverty alleviation models through the use of loans. In 2003, the commune's poverty rate was over 55%, now it is 33.8%. Poor households can borrow capital through channels such as: loans for poor households, loans for production households in difficult areas. Mr. Phan Van Phu, Chairman of Nghia Yen Commune People's Committee, said: "Nghia Yen has borrowed 17.7 billion VND from the district's Social Policy Bank up to now from 7 programs with 934 households receiving loans. In order for the capital to be effective, the commune's experience is that the borrowed capital is invested in growing sugarcane, watermelon or raising livestock, so when the poor are able to borrow capital, the commune has opened training classes on livestock and crop farming, guiding people to invest more effectively. At the same time, 17 loan groups will regularly monitor and report on the use of capital as well as the commune regularly checks the models to evaluate the effectiveness and replicate them."

Not only in Nghia Yen but Nghia Thang commune is also a typical example in promoting the effectiveness of loan capital. This is one of the difficult communes of Nghia Dan district with 53.7% of ethnic minorities living. In recent years, by implementing the policy of sustainable poverty reduction, especially focusing on preferential capital from the Bank for Social Policies, the commune has gradually reduced the rate of poor households year by year. By helping people borrow capital to develop the economy, including building typical models such as growing sugarcane QD 159, from which to replicate throughout the commune, bringing high-quality rice varieties to apply, transferring science and technology to farmers to develop the economy... The rate of poor households in Nghia Thang decreased from 17% in 2011 to 12% in 2012.

With the total outstanding debt up to this point of the district Social Policy Bank being more than 262 billion VND, in order to manage the capital well, the bank has coordinated with 4 mass organizations, namely the Women's Union, the Veterans Association, the Youth Union and the Farmers' Association, to receive the trust and manage capital by hamlet. This is a "centipede" system with the task of monitoring the use of capital, urging the implementation of tasks entrusted by the bank and managing capital by hamlet to bring about efficiency. Ms. Ho Thi Nhung, Director of the Nghia Dan District Social Policy Bank, said: "The bank implements 9 loan programs with the main subjects being the poor, policy families, choosing the right subjects that the bank is interested in the effectiveness of the loan capital. Due to the propaganda, many people also comply with the repayment of debt and interest on time, many households not only escape poverty but also become farm owners, economic development models of the district".

Thanks to those efforts, over the past 10 years, Nghia Dan District Social Policy Bank has played a good role as a "midwife" for more than 28,600 poor households. More than 12,000 poor households in Nghia Dan, thanks to capital from this program, have had the opportunity to eliminate hunger, reduce poverty and become rich.

Mr. Phan Tien Hai - Deputy Secretary of Nghia Dan District Party Committee said: "The loan capital from the Social Policy Bank has provided a significant amount of capital to help poor households and policy families in Nghia Dan district escape poverty. 28 thousand families have received loans and this is a very important source of capital to help people improve their lives and increase their income. On average, each year, Nghia Dan reduces the number of poor households by 2 to 3%, creating jobs for many workers, especially people in remote areas."

In the coming time, Nghia Dan will continue to replicate sustainable poverty reduction models and continue to promote the role of the District Social Policy Bank in supporting capital and guiding economic development for the people.

Dinh Thuy (Dai Nghia Dan)