Providing opportunities for household economic development from policy capital

Preferential loans from the Vietnam Bank for Social Policies (VBSP) are motivating farmers in Ham Thuan Nam commune to invest in production and stabilize their lives. Not only helping hundreds of poor and disadvantaged households escape poverty, this capital flow also contributes to promoting new rural development and maintaining social security in the locality.

Transaction Office of the People's Credit Fund of Ham Thuan Nam together with associations and unions inspect the use of loan capital.

Supporting farmers to do business

In Minh Tien village, Mr. Phan Hong Giang is busy taking care of his family's ornamental apricot garden. While meticulously pruning each apricot branch, he shared: "Through the Commune Farmers' Association, I was able to borrow 50 million VND from the Employment Loan Program of the Ham Thuan Nam Social Policy Bank Transaction Office. The preferential capital and low interest rate help me have the conditions to invest in better care for the apricot garden." Thanks to this capital, in addition to selling directly in the garden, every Tet holiday, Mr. Giang also brings apricot trees to display and sell at the local spring fair, creating a stable source of income for his family.

Not only Mr. Giang, policy credit capital has helped many households in the area expand production, change crops, develop livestock and business. Since then, people have become more confident in controlling their economy and gradually stabilizing their lives.

According to Mr. Tran Duy Hoai - Vice Chairman of the Farmers' Association of Ham Thuan Nam commune, after merging administrative units according to the 2-level local government model, the scale of savings and credit groups (S&LV groups) has changed a lot. The number of members in a group has increased due to the larger area, both creating convenience and posing difficulties in management. "The total amount of entrusted capital in the area has increased, better meeting the legitimate borrowing needs of the poor and policy beneficiaries. The large number of members helps mobilize more savings, creating conditions for capital to reach people more easily. However, that is also a challenge in management and supervision, especially in areas far from the commune center," said Mr. Hoai.

Currently, the Commune Farmers' Association is managing 11 Savings and Credit Groups with 558 borrowers, with a total outstanding loan balance of over 24.2 billion VND. The loan programs cover all areas from poor households, near-poor households to students, clean water and rural environmental sanitation... Thereby, contributing practically to the goal of sustainable poverty reduction.

Improve credit quality

Ms. Tran Thi Ngoc Minh - Director of the Transaction Office of the Bank for Social Policies of Ham Thuan Nam said: In recent times, the unit has implemented many synchronous solutions, from professional work to joint coordination with the government and socio -political organizations. Thanks to this approach, the quality of lending programs in the area has been increasingly improved. Up to now, the transaction office has disbursed programs with a total outstanding loan balance of more than 574 billion VND, serving 12,653 borrowers with outstanding loans through 246 savings and credit groups.

In close compliance with Directive No. 39-CT/TW of the Secretariat on improving the effectiveness of policy credit in the new period, Ham Thuan Nam Transaction Office closely coordinates with the Commune People's Committee and associations and organizations in reviewing and supplementing the list of poor and near-poor households, organizing public, democratic and appropriate evaluations. At the same time, strengthen capital management, handle overdue debts, risky debts, organize training to improve the capacity of association officials and loan group management boards.

At the same time, promote policy propaganda, guide borrowers to use capital effectively, and raise awareness of debt repayment. Transaction offices apply digital technology to trust management, strengthen inspection and supervision to ensure credit safety.

“In the coming time, we will continue to closely coordinate with local authorities and organizations to promptly disburse capital, meeting the legitimate needs of poor households and policy beneficiaries. The goal is to create more opportunities for economic development and improve the lives of local people,” Ms. Minh added.

Source: https://baolamdong.vn/trao-co-hoi-phat-trien-kinh-te-ho-tu-dong-von-chinh-sach-394247.html