Bringing capital to the poor

- Thanks to access to preferential loans from the District Social Policy Bank through savings and loan groups (S&L), in recent years, many poor households and policy beneficiaries in Yen Son district have had the conditions to develop production, create jobs, increase income, and escape poverty.

The life of Mr. Ly A Sanh's family in My Hoa village, My Bang commune has really changed when he has access to preferential loans to develop the economy . Mr. Sanh used to be a freelancer. In 2022, when he was able to borrow 50 million VND from the loan capital for poor households to develop the economy of the district's Social Policy Bank, he boldly invested in opening a wood processing workshop, making products such as: cabinets, shelves, tables and chairs...

Thanks to his diligence and skills, his shop is known by many people. Not only does he develop the family economy, he also creates jobs for 2 workers with an income of 9 million VND/person/month. Mr. Sanh said: "Thanks to preferential loans, my family has the motivation and solid support to develop the economy, raise children to study, and escape poverty."

Policy credit capital helps many poor households in Lang Quan commune (Yen Son) to develop their economy.

Like Mr. Sanh, Ms. Dang Thi Lan Huong's family in Village 2, Lang Quan Commune, after accessing preferential loans, changed their livestock farming model effectively. In 2023, after borrowing 100 million VND from the Savings and Credit Group through the Commune Farmers' Association, her family invested in building barns and buying nearly 2,000 breeding chickens. Thanks to the correct application of scientific farming methods, the family's model has grown more and more. Up to now, she regularly maintains and sells more than 2,000 chickens per batch, bringing in a monthly income of more than 15 million VND. In 2024, her family escaped poverty.

These are just 2 of thousands of customers in Yen Son district who have access to preferential loans through savings and credit groups to develop household economy. With the view of focusing on credit investment capital, Yen Son District Social Policy Bank has always played a good role in accompanying and helping many households borrow capital. Up to now, policy credit capital in the district has covered 100% of communes and towns with many preferential credit programs such as: loans for poor households, near-poor households, newly escaped poverty households; production, business, clean water and environmental sanitation loans, new construction and repair of houses...

Ms. Ngo Thi Thuy Xuyen, Deputy Director of Yen Son District Social Policy Bank, said: “From the changes in thinking and working methods of grassroots mass mobilization, the quality of operations of the network of entrustment, delegation, credit quality and performance evaluation indicators of the Bank have changed dramatically compared to previous years. The whole district has 452 savings and credit groups with over 14,952 borrowers, total outstanding debt of nearly 970 billion VND, overdue debt is only 0.34% of total outstanding debt.

Thanks to policy capital, the family of Ms. Truong Thi Bich Chuyen, Yen Son town, opened an electric motorbike shop, bringing a stable income for the family.

Of which, the Farmers' Association has 114 groups, the Women's Association has 148 groups, the Veterans' Association has 106 groups, and the Youth Union has 84 groups. Propaganda and mobilization work at the grassroots level has been carried out persistently, synchronously, comprehensively, and continuously, bringing about very positive results. The majority of savings and credit group leaders have used smartphone applications to collect monthly interest from group members, thereby ensuring accuracy and transparency in the delegation activities. Every year, the Savings and Credit Group Management Board is guided and trained by the district's Social Policy Bank to improve its management skills.

The Savings and Credit Group in Nam Bo village is one of the most effective groups in Kien Thiet commune with 38 members, a total outstanding debt of more than 3.5 billion VND, and no overdue debt for many consecutive years. In order for the capital to be used for the right purpose and effectively, Ms. Nguyen Thi Huong, head of the Savings and Credit Group in Nam Bo village, regularly checks and supervises the use of capital, and urges borrowers to pay interest on time. She actively encourages borrowers to save on spending and form the habit of saving. Ms. Huong said: "Thanks to effective coordination with banks and mass organizations, the group's outstanding debt has continuously increased, credit quality is good, there is no overdue debt, or frozen debt".

The Savings and Credit Groups are considered as an “extended arm” in the process of implementing policy credit. The operational efficiency of the groups has contributed to timely disbursement of capital to beneficiaries, reducing costs and time for borrowers and increasing access to capital for the poor and policy beneficiaries. Thereby, contributing to economic growth and reducing the poverty rate in the area each year.

Source: https://baotuyenquang.com.vn/dua-nguon-von-den-nguoi-ngheo-211289.html