Policy credit contributes to pushing back "black credit"

(GLO)- With the drastic participation of all levels and sectors, especially the Social Policy Bank (CSXH) system, people in Gia Lai province have had timely access to preferential loans.

This not only helps people develop production and escape poverty, but also contributes to preventing and repelling "black credit".

View of the meeting of the Board of Directors of the Social Policy Bank, Gia Lai branch. Photo: Linh Ly

Previously, because she had no money to invest in sugarcane care, Ms. Dinh Thi Ren (Jro Ktu Dak Yang village, Yang Bac commune, Dak Po district) had to "borrow hot money" from businesses in the village to buy seeds, fertilizers, and materials for production. After harvesting, she had to pay with agricultural products but at a fairly high interest rate. In 2022, she was supported with a loan of 50 million VND from the District Social Policy Bank Transaction Office to develop production. After the disbursement, she used 30 million VND to buy fertilizer for sugarcane and buy breeding cows; the remaining 20 million VND she invested in building a toilet. "Thanks to being able to borrow policy credit capital with low interest rates, I no longer have to "borrow hot money" from outside. Therefore, my family has been doing business more effectively and has risen out of poverty, building a spacious house" - Ms. Ren shared.

Yang Bac commune currently has 619 households borrowing capital from the District Social Policy Bank Transaction Office with outstanding loans of more than 5.3 billion VND. Chairman of the Commune People's Committee Vo Viet Nghia said: "Each household borrows about 30-50 million VND, mainly investing in cattle breeding and sugarcane cultivation. Thanks to policy credit sources, the situation of "hot loans" and "black credit" has almost disappeared."

Kong Chro district has nearly 75% of the population being ethnic minorities, and their lives still face many difficulties. At the beginning of every production season, many ethnic minority households have to "borrow hot money" to buy agricultural materials at high interest rates. Mr. Dinh Van Poi (To Nung-Mang village, Ya Ma commune) said: "In 2022, through the Commune Farmers' Association, I received a loan of 30 million VND from the District Social Policy Bank Transaction Office to develop production. With the capital, I bought agricultural materials and bought 2 more breeding cows for a living. Up to now, my family's herd has 5 cows, not counting the cows sold to get money to build a house."

Ya Ma commune currently has 426 households, of which 266 are poor and 68 are near-poor. Thanks to the promotion and mobilization of propaganda, people in the commune have boldly borrowed preferential loans to develop production. To date, the total outstanding debt of the whole commune has reached nearly 13 billion VND with over 90% of households having received policy credit loans.

Mr. Huynh Ngoc An - Vice Chairman of Kong Chro District People's Committee - informed: "Currently, the number of ethnic minority households borrowing at the District Social Policy Bank Transaction Office accounts for 80.6% of outstanding loans. The rate of households accessing policy credit capital reaches 60.06% of the total number of households in the district. Thanks to timely bringing credit capital to the people, the situation of "black credit" in ethnic minority areas has been limited".

In recent years, all levels and sectors have coordinated effectively to implement policy credit programs, especially lending programs for poor households, near-poor households, and ethnic minority households. Ms. Ro Cham H'Hong - President of the Provincial Women's Union - informed: To push back "black credit", the Union at all levels has coordinated with the police force to promote propaganda about the consequences of "black credit" to members. In particular, the Union at all levels has effectively promoted and expanded the clubs "Women say no to black credit", "Ethnic minority women save 5-10 million VND"; supporting female members to access policy credit sources for economic development.

Thanks to policy capital, many poor households in Kong Chro district have stabilized their lives. Photo: Linh Ly

Director of the Provincial Branch of the Bank for Social Policies Le Van Chi said: After more than 10 years of implementing Directive No. 40-CT/TW dated November 22, 2014 of the Secretariat on strengthening the Party's leadership over social policy credit, up to now, policy credit has been deployed to 100% of villages and hamlets in remote communes and ethnic minority areas. Annual credit growth reaches 10% or more.

To date, outstanding credit has reached over VND 7,288 billion with 156,574 poor households, near-poor households and policy beneficiaries still having outstanding loans. In addition to allocating entrusted budget capital, localities also focus on reviewing and promptly updating and supplementing poor and near-poor households, ensuring that 100% of poor households and other policy beneficiaries who are eligible and in need have access to policy credit capital to invest in production development and stabilize their lives.

Source: https://baogialai.com.vn/tin-dung-chinh-sach-gop-phan-day-lui-tin-dung-den-post326176.html