Quang Nam increases resources for policy credit

Ms. Huynh Thi Hanh (middle) produces rice paper effectively with preferential loans. Photo: Q.VIET

Recorded in Thang Binh

In 2022, the budget of the People's Committee of Thang Binh district entrusted to the Transaction Office of the Social Policy Bank (CSXH) of the district to lend to poor households and policies in the area is 1.2 billion VND. By 2023, the entrusted capital in Thang Binh has increased to 1.5 billion VND; in 2024 it is 2 billion VND.

Mr. Tran Quoc Tuan - Director of the Transaction Office of the Social Policy Bank of Thang Binh district said that recently, along with the capital allocated by the provincial and central Social Policy Bank, the capital entrusted from the district People's Committee budget has promoted 16 preferential loan programs for local people.

Including loans for poor households, near-poor households, households that have just escaped poverty, loans for job creation, loans for labor export, loans for production and business in difficult areas...

"We urgently disburse capital for people to do business, increase income, improve life, and promote socio -economic development in the area," said Mr. Tuan.

Vice Chairman of the Provincial People's Committee Tran Anh Tuan - Head of the Board of Directors of the Quang Nam Social Policy Bank requested localities in the province to continue focusing on mobilizing lending resources, especially local budget sources entrusted to the Social Policy Bank to increase lending capital for poor households and other policies, ensuring that 100% of people in need and eligible can borrow policy credit.

“Local capital entrusted to policy banks needs to continue to promote its role in sustainable poverty reduction, job creation, new rural development, and social security. Thereby, limiting usury and black credit in rural areas, remote areas, and ethnic minority areas,” Mr. Tran Anh Tuan emphasized.

Mrs. Huynh Thi Hanh's household (Thai Dong village, Binh Nam commune) borrowed 100 million VND from the Transaction Office of the Social Policy Bank of Thang Binh district to invest in making rice paper.

With 150kg of rice per day, Mrs. Hanh's household produces 145kg of rice paper to sell to small traders, grocery store owners, wholesale markets, supermarkets, and shopping centers, earning a good profit. Mrs. Hanh's household has created additional jobs for 5 local workers with an income of 5 million VND/person/month.

"Thanks to preferential loans from the policy bank, my family has invested in machinery for production, increased output and productivity, reduced costs, and increased competitiveness in the market," said Ms. Hanh.

Policy credit helps people develop the economy. Photo: Q.VIET

Mr. Pham Van Tai - Head of the Savings and Loan Group of Thai Dong village said that the total outstanding debt of the group is currently more than 1.5 billion VND with 29 households borrowing capital. Thanks to access to preferential loans, local people have effectively invested in livestock, crop cultivation, aquaculture, etc.

“People’s need for loans to do business, invest in clean water, sanitation, the environment and educate their children is very high. After borrowing, people invest effectively, repay debts on time and save to increase capital to help other households have the opportunity to access preferential loans,” said Mr. Tai.

Boost from increased trust capital

Currently, Hoi An City is the locality that entrusts the largest budget to the policy bank in the province with 8 billion VND in 2024. Next is Tam Ky City with 6.2 billion VND; followed by Nui Thanh, Phuoc Son, Thang Binh districts...

Mr. Nguyen Van Lanh - Vice Chairman of Hoi An City People's Committee, Head of the Board of Directors of Hoi An Social Policy Bank said that the demand for preferential loans from local people to invest in the economy and society is very large.

In recent years, although budget revenue has been facing many difficulties, Hoi An has still made efforts to balance local capital entrusted to the Transaction Office of the Social Policy Bank to lend for many preferential programs.

Ms. Nguyen Thi My - Director of the Transaction Office of the Social Policy Bank of Hoi An City said that the local budget has increased capital sources, thereby making it easier to implement preferential loan programs.

The results have been great, up to now there has been no bad debt in the area because people who have done well in business have paid their debts on time. Along with that, borrowers have deposited money to enrich their capital, continuing to lend to other households in need of capital.

Mr. Hoang Thanh Lan - Head of Planning - Credit Operations Department (Social Policy Bank, Quang Nam branch) said that in 2024, the capital entrusted by the Provincial People's Committee to the Social Policy Bank, Quang Nam branch is 110 billion VND. That capital plus the capital entrusted by districts, towns and cities will increase to 142 billion VND in 2024.

According to Mr. Lan, the provincial policy bank, districts, towns and cities regularly coordinate closely with associations and unions to actively propagate the Party and State's policies on policy credit. Speed up lending, integrate policy credit with other capital sources, check and supervise before, during and after lending... to promote the effectiveness of preferential credit.

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