Practical loan program for households with average living standards

Since mid-May 2024, many households with average living standards in Da Nang have been able to borrow policy capital with stable interest rates to do business and produce to increase their income.

Since mid-May 2024, many households with average living standards in Da Nang have been able to borrow policy loans with stable interest rates. IN PHOTO: Policy credit transactions in Hoa Minh ward (Lien Chieu district) . Photo: MQ

Recorded at the transaction point of Hoa Minh ward (Lien Chieu district) on June 14, households with average living standards received loans at the transaction counter. Ms. Le Thi Lac (born in 1966) was able to borrow 60 million VND to expand her scrap collection facility in group 36, Hoa Minh ward. Ms. Lac said that it was the peak of construction so she wanted to have capital to buy scrap in large quantities, so when she heard that the Social Policy Bank (SPB) was implementing a new loan program with an interest rate of 7.92%/year, she applied and was quickly approved. Because the scrap facility was operating stably, Ms. Lac said that she planned to repay the above amount within 2 to 3 years. It is known that Ms. Lac previously borrowed capital from the SPB as a near-poor household, and now her children have jobs so their lives are gradually more stable.

Also borrowing capital to expand her business, Ms. Le Dieu Hien (born in 2003, residing in Group 38, Hoa Minh Ward) has been selling clothes at home for the past 4 years. She now wants to open another store and has capital to import goods, so she borrowed 80 million VND, with an interest rate of 7.92%/year under the program for households with average living standards. Ms. Hien shared that borrowing capital from the Social Policy Bank has a reasonable, stable interest rate that gradually decreases according to the principal paid, so she feels very secure. Ms. Hien will pay the loan amount and interest over 3 years.

In mid-May, Ms. Pham Thi Tien, residing in Hoa Hai Ward (Ngu Hanh Son District), received a loan of 70 million VND to open a restaurant. Ms. Tien's family has 4 children of school age, so they need a source of capital with a stable interest rate to avoid creating too much pressure. After accessing the loan, Ms. Tien is investing in additional facilities and renting a larger space to do business. Ms. Tien shared that the loan procedure is very simple and the bank also disburses quickly.

This is a lending program for households with average living standards - a new policy and Da Nang is the first locality to implement it. On April 12, 2024, the City People's Committee issued Official Dispatch No. 1908/UBND-SLDTBXH dated April 12, 2024 on implementing credit policies for households with average living standards according to city standards. Accordingly, the documents, procedures, processes and organization of lending to households with average living standards according to city standards are applied as prescribed for poor households according to city standards in Decision No. 19/2017/QD-UBND dated June 16, 2017 of the City People's Committee on promulgating regulations on management and use of local budget capital entrusted through the VBSP to lend to the poor and other policy beneficiaries in the city. The lending capital is entrusted by the City People's Committee through the VBSP, meeting 100% of the needs of households that meet the prescribed conditions. Specifically, households with an average living standard can borrow a maximum of 100 million VND with a maximum loan term of 120 months; the preferential interest rate is equal to the lending interest rate for near-poor households. The interest payment method is monthly, while the principal is paid in installments. In addition to the purpose of increasing business capital, the loan policy for households with an average living standard also creates conditions for students to cover their study expenses.

Mr. Doan Ngoc Chung, Director of the Da Nang City Branch of the Social Policy Bank, informed that after the policy was approved by the city, the branch has deployed it synchronously to all district units and trained the leaders of the savings and loan groups to understand it. At the same time, leaflets with easy-to-understand content were printed so that people could access information faster with simple, clear, and easy-to-implement procedures and documents, and disbursements right at the locality where people reside, helping customers not to have to go to the transaction office, limiting repeated trips. By June 13, the branch had disbursed 35 customers under the loan program for households with average living standards with an amount of 2.6 billion VND. In addition to lending to households with average living standards, the Social Policy Bank is implementing 24 other loan programs with a total outstanding debt of 4,955 billion VND, the overdue debt rate is only 0.03%. It can be seen that people's awareness of using capital from these policies has been raised and is increasingly effective. With the city's social security policies and this special loan package, it will greatly help beneficiaries in the coming time, contributing to improving people's quality of life.

CINNAMON

Source: http://baodanang.vn/kinhte/202406/thiet-thuc-chuong-trinh-cho-vay-ho-co-muc-song-trung-binh-3975595/