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Loan program for newly escaped poverty households - a fulcrum for sustainable poverty escape

Not just a loan, the lending program for newly escaped poverty households of the Vietnam Bank for Social Policies is becoming a lever for economic development, helping people confidently continue on their journey to rise up, stabilize their lives and escape poverty sustainably.

Báo Nhân dânBáo Nhân dân05/08/2025

The garment factory of Mr. Nguyen Van Hung's family (Hung Yen) creates jobs for many women in the village.
The sewing workshop of Mr. Nguyen Van Hung's family ( Hung Yen ) creates jobs for many women in the village.

One capital, many changes

Escaping poverty is difficult, avoiding falling back into poverty is even more difficult. In practice, without timely support policies, people can easily fall into the poverty spiral after just a few unexpected shocks in life. Therefore, the credit program for newly escaped poverty households implemented by the Vietnam Bank for Social Policies has become an important link in the State's multidimensional poverty reduction policy chain.

Mr. Nguyen Van Hung (Binh Thanh commune, Hung Yen province) used to be a poor household and also borrowed 20 million VND in 2016 under the poor household loan program to develop livestock farming. After escaping poverty in 2021, he continued to receive a loan of 50 million VND from the Social Policy Bank under the credit program for newly escaped poor households.

With capital in hand, he boldly opened a garment factory at home. Not only did it help stabilize the family economy , his production facility also created regular jobs for nearly 40 women in the village, with an income of 5-10 million VND/person/month.

“Thanks to preferential capital, my family has not only stabilized our lives but also helped many local workers earn income. Life is now very different from before,” Mr. Hung shared.

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Although she is 70 years old, Ms. Hoang Thi My (Hung Yen) still boldly borrows policy capital to develop her household economy.

Also in Binh Thanh commune, Ms. Hoang Thi My, an elderly householder, used preferential loans to renovate her garden pond, invest in barns, and raise fish, pigeons, and pigs. What is special is that she was able to access loans without collateral, which would have been nearly impossible if she had gone to commercial credit institutions.

“I was able to borrow money and the procedures were extremely simple and convenient. During the loan process, I was often guided, advised and helped by bank staff and women in the Loan Group to use the money effectively. Thanks to that, I have a stable income in my old age, not depending on my children,” Ms. My confided.

From hundreds of thousands of small stories like that, the loan program for newly escaped poverty households has truly become a support for persistent journeys, empowering people to overcome the period after escaping poverty, which is always the most vulnerable period.

Spreading capital to the right people, at the right time

According to the latest data from the Vietnam Bank for Social Policies, the loan turnover since the implementation of the lending program for newly escaped poor households (2015) has reached more than VND 118,089 billion, the debt collection turnover is more than VND 71,426 billion with more than 2.75 million customers borrowing capital. To date, the total outstanding loan balance of the lending program for newly escaped poor households has reached more than VND 46,600 billion with more than 897,000 customers still having outstanding loans. This figure also partly reflects the widespread influence and practical effectiveness of this policy.

Unlike commercial credit, the loan program for newly escaped poor households does not require collateral or complicated procedures, but still ensures transparency and responsibility in using capital. With just a loan application with local confirmation and a reasonable capital use plan, people can borrow up to 100 million VND, with a maximum loan term of 5 years, with a preferential interest rate of 8.25%/year fixed throughout the loan term.

“Loan procedures are processed quickly, usually within a week, and people do not have to go back and forth many times,” said Ms. Nguyen Thi Thu Phuong, an officer at the Transaction Office of Kien Xuong Social Policy Bank, Hung Yen province.

Along with the capital source is a network of Savings and Loan Groups covering all villages and hamlets. These are considered the extended arms of the Social Policy Bank in supporting, supervising and accompanying people from the stage of preparing documents, guiding the use of capital, to urging timely debt repayment.

“The loan group helps people borrow correctly, use correctly and repay correctly. When people use capital correctly and have a steady income, they can both pay off debts and reinvest in production. That is the root of sustainable poverty reduction,” said Ms. Nguyen Thi Lua, Head of the Savings and Loan Group in Nguyen Giam village (Binh Thanh commune, Hung Yen).

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The staff of the Kien Xuong Social Policy Bank Transaction Office (Hung Yen) always accompany and help people in the process of using loans.

It can be said that the lending policy for newly escaped poverty households is one of Vietnam's unique policy credit models, recognized internationally as a solution of "not giving away for free, but providing targeted support", both avoiding creating a mentality of dependence and encouraging people to improve their lives. Looking at social effectiveness, this program is not only a "next step" in the chain of poverty reduction policies but also contributes to social stability, preventing black credit, and creating livelihoods, especially in rural, remote and isolated areas.

In this journey of sustainable poverty reduction, supporting newly escaped households is a key step but is also easily forgotten. If we only stop at “escape poverty” without continuing to accompany them, the risk of falling back into poverty will always “lurk” when there is a natural disaster, epidemic or the smallest economic shock.

Therefore, the State's preferential credit policy for newly escaped poverty households implemented through the Social Policy Bank is doing the right thing and needs to continue to be strengthened in terms of scale and resources, especially the participation of local authorities and socio -political organizations. Each preferential policy capital, if it reaches the right person at the right time, will not only be a means of production but also a belief and a fulcrum for the people's journey to fight poverty and rise to wealth.

Source: https://nhandan.vn/chuong-trinh-cho-vay-ho-moi-thoat-ngheo-diem-tua-thoat-ngheo-ben-vung-post898725.html


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