Preferential credit helps poor households develop their economy

Chayote growing model of people in Chieng Khay commune, Quynh Nhai district.
Photo: PV

Five years ago, the poverty rate of Nam Et commune, a commune in region III of Quynh Nhai district, was up to 40%. Along with the support of the district, the credit capital of the Social Policy Bank has created a great driving force for poor and near-poor households in the commune to have conditions for economic development. Currently, the total outstanding debt of the whole commune is more than 60 billion VND, helping more than 862 households implement production models, especially livestock farming, fruit tree planting, cage fish farming... The average income per capita of the commune reached 45 million VND/person/year, contributing to reducing the poverty rate to 6.25%.

The Quynh Nhai District Social Policy Bank Transaction Office is implementing 16 preferential credit loan programs. Beneficiaries are poor households, near-poor households, households that have just escaped poverty, students with difficult circumstances, households doing business in difficult areas, and borrowing to solve employment problems. Maintaining 11 transaction points in communes and towns and establishing 202 savings and loan groups, managed by the Farmers' Association, Women's Union, Veterans' Association and Youth Union. The total outstanding debt of the whole district is over 430 billion VND, with 7,188 households borrowing capital.

Mango growing model of people in Nam Et commune, Quynh Nhai district

To ensure that capital reaches the right beneficiaries and is used for the right purposes, the Transaction Office has coordinated with localities to review and appraise loans; provide advice on production development; guide households to apply science and technology in production and business, and implement appropriate economic models. At the same time, regularly check the use of capital at borrowing households.

As the focal point for receiving the trust from the Social Policy Bank for households to borrow capital, the 4 association organizations always accompany their members and union members to propagate the meaning of policy capital. Every year, they conduct a review of households in need of loans to propose loans, aiming at production models led by women, starting businesses among youth union members, supporting veterans to do business...

Staff of the Service Department of the Social Policy Bank of Quynh Nhai district inspected the use of capital by borrowers in Chieng Bang commune.

The Farmers' Association of Quynh Nhai District is currently entrusted with 126 billion VND from the Social Policy Bank, lending to more than 2,000 members, implementing the construction of 61 effective economic development models. The Association also coordinated to organize more than 200 training courses to transfer science and technology to tens of thousands of members. In the past 5 years, the whole district has had 99 member households escape poverty, contributing significantly to reducing the poverty rate of the district from 16% in 2020 to 3.79% in 2024 and helping 10/10 communes of the district meet new rural standards.

Policy credit capital through the Transaction Office of the Social Policy Bank of Quynh Nhai district has actively contributed to the implementation of socio-economic development goals and tasks, especially in the poverty reduction and job creation programs, ensuring social security and building new rural areas of the locality.