1. Seeing Ms. Bui Thi Hong (Chairwoman of the Women's Association of Hamlet 8, Can Duoc Commune, Tay Ninh Province) bringing guests to visit, Ms. Phan Thi Kim Linh quickly prepared a seat in the corner of her small roadside shop for the guests and happily invited them to enjoy the fried banana cake she was selling. Recounting her story, Ms. Linh couldn't hide her joy.
Her family was classified as near-poor, her husband passed away early, leaving her to raise her children alone. She also lacked land for farming and had no stable job, resulting in a life full of hardships.
With a loan from the policy bank, Ms. Phan Thi Kim Linh plans to buy more goods to sell during the Tet holiday.
She opened a small roadside stall selling fried banana cakes and some candies to the children in the neighborhood. Her daughter was about to go to university, and the financial burden on the family weighed heavily on Ms. Linh's mind. She recounted: “Since I already had a relatively decent place to sell things, I wanted to expand my business to include some homemade cakes, and with Tet (Lunar New Year) approaching, I also wanted to buy some more goods to sell during the holiday. That was the idea, but I didn't have the capital to buy inventory. Luckily, the Women's Association helped me borrow 30 million VND from the Social Policy Bank.”
Joy shone in the eyes of the hardworking woman. Ms. Linh recounted that, in addition to the loan from the Social Policy Bank, she had previously participated in a revolving fund, and although the amount received wasn't much, it helped her cover some of her living expenses. For her now, ensuring her children receive a proper education is the most important thing, because she firmly believes that their lives will eventually improve.
According to the Head of the Women's Association in Hamlet 8, Can Duoc Commune, supporting members, especially poor and near-poor members, in accessing loan sources from the Social Policy Bank is always a priority. To date, the total outstanding loan balance managed by the Association is approximately 2.5 billion VND.
“In addition to helping members access loan capital, we also established revolving fund groups, with monthly contributions so that the women have a source of funds to manage their finances and make small purchases when needed. Currently, the fund groups are temporarily suspended to consolidate their operations, while the effective groups continue to operate, both to help the women and to create a sense of community,” said Ms. Bui Thi Hong.
In reality, the biggest difficulties faced by poor and near-poor households stem not only from unemployment or limited skills but also from a lack of access to capital. Without initial capital, poor households find it difficult to invest in livelihoods or expand production. Timely access to capital acts like a "fishing rod," helping the poor rise above their circumstances while minimizing the risk of them resorting to predatory lending.
2. Cases like that of Ms. Phan Thi Kim Linh demonstrate that preferential loan capital helps poor and near-poor households create livelihoods and open up opportunities to improve their family's economic situation. In many other localities, loan models from the Social Policy Bank or revolving fund sources are also proving effective, bringing about more positive and sustainable changes for the people.
“Thanks to the revolving fund of the Farmers’ Association, my wife and I were able to borrow 10 million dong to invest in fish farming, and then set up more fishing nets, so we have some income coming in,” said Mr. Nguyen Van Loc (resident of Say Giang hamlet, Khanh Hung commune) happily as he stepped out of his small boat.
His wife, Mrs. Le Thi Thung, quickly selected a bunch of fresh shrimp, preparing to take them to the market. Thanks to raising fish and setting traps on the river, their economic situation has improved somewhat. Mrs. Thung recounted that previously, she and her husband had received a 50 million VND loan from the Social Policy Bank, supported by the village's Farmers' Association, to raise cattle. The cattle grew quickly and sold at a good price, allowing them to pay off the bank loan and even have some extra money to manage household expenses. "My husband is planning to borrow more capital to raise more cattle, as a kind of safety net," Mrs. Thung said.
Ms. Le Thi Thung selects the shrimp she just caught in her net, preparing to take them to the market.
The couple were originally classified as near-poor, without land for farming, and their children were also struggling and unable to provide much assistance. Therefore, even in their 60s, they still diligently worked. Catching small fish in the river right in front of their house helped them avoid the arduous task of working as hired laborers.
"It would be great if we had more cow sheds; we raise cows to generate more income. If the Farmers' Association hadn't helped us with bank loans and revolving capital, my wife and I wouldn't know what to do. Without land and capital, we would have no choice but to work as laborers, but we're getting old and can't do much anymore," Mr. Loc said.
According to Dang Dinh Cu, head of the Farmers' Association in Say Giang hamlet, the association currently manages 3 billion VND in outstanding loans from the Social Policy Bank and over 500 million VND from the Farmers' Support Fund, all of which are lent to members for economic development. In addition, the association has a revolving fund of 135 million VND, established since 2007.
"Besides supporting members in accessing bank loans, revolving fund loans help members overcome immediate difficulties, such as purchasing raw materials and production tools. The amounts are small, making repayment easy, which is why the fund has been operating effectively for nearly 20 years," said Mr. Dang Dinh Cu.
Thanks to a loan from the revolving fund, Mr. Nguyen Van Loc and Mrs. Le Thi Thung invested in fish farming on the small river in front of their house.
According to Mr. Cu, thanks to the revolving fund of the Farmers' Association, farmer members are more closely connected, which is why 100% of farmers in the hamlet are members of the Farmers' Association. "We always believe that when encouraging farmers to join the Association, we must help them see the difference that participation makes. Thanks to the revolving loan fund, members are more committed, and those in need who receive the capital strive harder to 'catch up with their peers.' As a result, many people have gone from near-poverty households to becoming well-off," Mr. Cu said.
When preferential credit policies from the Social Policy Bank are combined with local revolving fund models, poor and near-poor households not only receive financial resources but also receive moral support, creating motivation to rise above their circumstances. This is a sustainable approach, contributing to the achievement of multidimensional poverty reduction goals and the construction of new rural areas.
Moc Chau
Source: https://baolongan.vn/nguon-von-trao-hy-vong-a208200.html
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