From poor household to billionaire in the countryside

Effective lending models

Meeting Nguyen Thi Suu and Le Khac Loan in Dong Thinh hamlet, Giang Son Dong commune, Do Luong district, few people would think that their family used to be a poor household in the commune. At the end of April 2023, Loan and his wife were tidying up their belongings to prepare for the construction, repair and upgrading of the house.

Mr. Loan said that the house his parents left behind for many years, many wooden parts were infested with termites but he had no money to repair them. Thanks to his savings over the years, this year he renovated the house before the rainy season. Not far from the neatly stacked tiles and bricks, Ms. Suu was picking grass to feed her three cows.

Ms. Nguyen Thi Suu and Mr. Le Khac Loan in Dong Thinh hamlet, Giang Son Dong commune, Do Luong district develop livestock farming with a loan from the Policy Bank. Photo: Thu Huyen

Ms. Suu confided that her family used to be poor, and apart from a few fields, they had no other source of income. Luckily, the Do Luong District Policy Bank lent them 30 million VND to buy 2 cows. The couple took turns taking care of them so they could reproduce. Thanks to that, they had money to send their children to school and escape poverty. Then, with the near-poor status, after paying off all the old debts, we were able to borrow 50 million VND to buy 3 more cows.

These 3 cows, along with the 2 cows that were profitable from the previous loan, have given Ms. Suu and her husband an annual income increase. With the cows they raised before and the additional loan, they have gradually escaped poverty, and at the same time have capital to invest in planting more trees and raising more chickens and pigs. In the near future, her family plans to buy more goats to raise.

Each year, cows give birth to 1-2 litters, which also brings in tens of millions of dong. When the children grow up and graduate with student loans, the parents can save up to repair the house. Without the support of the Policy Bank, the attention of the government, especially the Farmers' Association, we don't know when we will be able to escape poverty."

Mr. Le Khac Loan - Dong Thinh hamlet, Giang Son Dong commune, Do Luong district

Not only Mr. Loan and Ms. Suu's families, many other households have also risen out of poverty and become well-off and rich thanks to creating effective production and business from loans from the Policy Bank. For example, the family of Mr. Nguyen Van Tam and Ms. Tran Thi Chuyen in Thuan Minh hamlet, Thuan Son commune.

Mr. Tam's family was also a poor household in the commune. However, in less than 5 years, from being a poor household, Mr. Tam and his wife now have a business with an income of hundreds of millions of dong each year, not only from raising breeding cows, but also from a vegetable farm and additional income from funeral services such as wedding catering, renting dishes, and renting cars.

The family of Mr. Nguyen Van Tam and Ms. Tran Thi Chuyen in Thuan Minh hamlet, Thuan Son commune rents alluvial land for agricultural production. Photo: Thu Huyen

Taking us to a vegetable farm of more than 20 hectares in the Lam River alluvial area flowing through Thuan Son commune, Mr. Tam and his wife, along with officials of the commune's Farmers' Association, said that with the method of growing seasonal vegetables, Mr. Tam's farm provides vegetables and fruits not only for wedding services, but also for wholesale and retail markets, small traders in and outside the commune as well as some industrial kitchens in neighboring areas. With nearly 1 billion VND invested in the farm, including renting land, buying plows, building irrigation systems, and regularly hiring 5-6 workers, every year, the seasons of squash, gourd, and sweet corn, each season has brought in hundreds of millions of VND in income each year.

“From the loan from the Policy Bank, we bought two cows, raised them to give birth, and gradually our family escaped poverty, and were able to borrow more capital. From the giving birth of the cows, the couple grew vegetables and rice, and saved up enough to buy a car to transport funeral services. When we had more capital, we invested in buying equipment to provide wedding hall rental services. Our two children were able to go to school thanks to the student loan. Now that they have finished school, our parents have also paid off all their bank debt,” said Ms. Tran Thi Chuyen.

From policy loans, investment in livestock farming has given Ms. Tran Thi Chuyen's family in Thuan Minh hamlet, Thuan Son commune a prosperous economy. Photo: Hoai Thu

Up to now, after more than 4 years of making full use of the loan capital, Mr. Tam's family has not only paid off all the debt, but also increased the "capital" from 2 cows to dozens of cows for sale, and now still maintains a herd of 5 cows and has a property that the locals call "millionaire farmers" that both raises livestock and grows crops, combined with dynamic services, providing a stable income.

Mobilizing savings, supplementing lending capital

Coming to Do Luong today, it is not difficult to find effective loan models from the Policy Bank. Some examples include: Nguyen Thi Tuyet, Van Tho hamlet, Hien Son commune, borrowed 100 million VND from the job creation program to buy 4 deer and repair barns; currentlydeer are ready to be cut for velvet; Ms. Tran Thi Ly in Thang Loi hamlet, Boi Son commune borrowed 100 million VND from the near-poor household program to buy 2 breeding buffaloes to develop the economy. In addition, Ms. Kha also borrowed 20 million VND from the clean water and environmental sanitation program to build a clean water sanitation facility and a well for daily use. Or Mr. Nguyen Van Tung's household in Thai Trung hamlet, Minh Son commune, a near-poor household, borrowed 50 million VND to buy 2 breeding buffaloes and cows, and now has 5 buffaloes and cows.

Model of Mr. Tran Van The Dan in Dong Thinh hamlet, Giang Son Dong commune, borrowing 100 million VND to produce leather belts, creating regular jobs for 3 workers. Photo: Thu Huyen

Not only borrowing capital for livestock farming, some young people in Do Luong have boldly borrowed capital to invest in effective production and business. That is the model of Mr. Tran Van The Dan, born in 1985 in Dong Thinh hamlet, Giang Son Dong commune, borrowing 100 million VND to open a business booth, producing leather belts, creating regular jobs for 3 workers with an income of 4 - 6 million VND/1 worker/month.

Also in Dong Thinh hamlet, Giang Son Dong commune, many people admire his family.Dang Ba Tan from the student loan program of the Policy Bank, with a loan amount of 263 million VND, his familyhas raised 5 students to study at universities in the South and the North and currently his family has 5 children.graduated, got a job and paid off all debt

Village officials and loan group visited his family.Dang Ba Tan in Dong Thinh hamlet, Giang Son Dong commune. Photo: Thu Huyen

Mr. Nguyen Huu Ky - Director of Do Luong District Policy Bank said: Closely following the targets and tasks assigned by the Provincial Social Policy Bank from the beginning of the year, in the first quarter of 2023, the Board of Directors continued to direct and organize the implementation of the targets and tasks assigned by the superiors. Taking advantage of the District People's Committee to transfer the district budget to the District Social Policy Bank Transaction Office to lend to poor households and other policy beneficiaries. Up to now, the total capital transferred from the district, commune and local units has reached 3,244 billion VND, an increase of 500 million VND compared to the beginning of the year. The total capital reached more than 594 billion VND, the growth rate reached 4.01%; the total outstanding debt reached 593,685 billion VND, the growth rate reached nearly 4%.

In addition to improving credit quality and increasing outstanding loans with increasing credit scale, district-level trust units have directed commune-level trust units to promote propaganda on mobilizing savings deposits through groups. Up to now, the balance of savings deposits through savings and loan groups has reached nearly 37 billion VND, completing 143% of the plan assigned by superiors with 10,781 customers participating in savings deposits, accounting for nearly 100% of customers with outstanding loans. Along with that, mobilizing savings deposits at market interest rates through district-level trust units has so far reached 37,599 billion VND, accounting for 43.39% of the total balance of savings deposits at market interest rates. Notably, the District Women's Union has the largest growth balance with an amount of 1,187 billion VND. Communes with large growth balance compared to the beginning of the year include Nam Son, Giang Son Dong, Quang Son, Boi Son, Dai Son, and Bac Son.

“With many flexible solutions in capital mobilization, it has helped increase capital sources to supplement loans for poor households and other policy beneficiaries, helping them develop the economy, contributing to sustainable poverty reduction and ensuring social security,” Mr. Nguyen Huu Ky shared./.