Green loans - A humane financial flow

The Earth is facing increasing pressure from human economic activities such as environmental pollution, resource depletion, climate change, and ecological imbalance. These challenges are no longer just a matter for one country but have become a global issue.

Credit officers at TCVM Thanh Hoa are promoting and advising customers on green loans.

In Vietnam in general, and Thanh Hoa province in particular, the promotion of green credit has been strongly emphasized in the development strategy of the banking sector, aiming to fulfill national commitments on green growth, emission reduction, and environmental protection. The active participation of financial institutions, especially microfinance institutions, in providing green financial products will help expand the reach of these credit products to the grassroots level – where household economic models play a fundamental role.

In the practice of local economic development, many green production models have proven remarkably effective, not only bringing economic value but also contributing to improving the living environment, protecting public health, and using resources more efficiently. However, the biggest obstacle to green economic initiatives and growth models in the community often lies in the ability to access preferential loan capital with loan limits that meet needs and sufficient terms for the models to be effective.

Based on that reality, the Thanh Hoa Microfinance Organization has launched a green loan product. With its network operating close to the community, the Thanh Hoa Microfinance Organization has the advantage of bringing green capital to the right target groups and meeting the right needs, thereby contributing to the effective achievement of green growth goals, circular economy development, and emission reduction.

This product is designed to support individuals, households, and businesses operating in sectors that positively impact the environment, such as: minimizing environmental pollution through improved production processes; planting and cultivating industrial crops to contribute to sustainable ecosystem development; producing and trading clean food, environmentally friendly products, and non-fired building materials. Activities such as livestock farming using waste treatment systems and biological bedding; installing clean water systems and constructing biogas digesters; and collecting and recycling agricultural and forestry waste are also target customers for the Thanh Hoa Microfinance Organization's green loan product. In addition to traditional production and business models, investments in electricity and renewable energy, and other green business models that contribute to reducing emissions and saving resources demonstrate the organization's vision and ambition to expand further.

With flexible financing conditions tailored to the specific characteristics of green economic models in rural and suburban areas, Thanh Hoa Microfinance Organization's green loan products offer several outstanding advantages, including: preferential interest rates to optimize capital costs and improve production and business efficiency; loan terms up to 36 months, providing sufficient time for green projects to develop stably; and flexible principal and interest repayment methods to suit customers' production cycles and cash flow. To maximize convenience for customers, Thanh Hoa Microfinance Organization simplifies the loan application process and procedures; provides dedicated support staff; and disburses funds directly at village cultural centers, making it easy for people to access formal financial services.

The green loan product of Thanh Hoa Microfinance Organization is a practical financial solution that not only creates sustainable livelihoods for people but also contributes to reducing pressure on the natural environment and promoting the formation of more responsible production and consumption habits in the community. Because of these advantages, objectives, practical values, and positive impacts, the green loan program of Thanh Hoa Microfinance Organization has attracted many customers. To date, 1,552 green models have been supported by Thanh Hoa Microfinance Organization's green loan program with a total outstanding loan balance of 45.8 billion VND.

Every sustainable business idea needs resources to develop. And in the journey towards a green economy, responsible capital flows act as "nourishment," helping environmentally friendly models to form, expand, and spread their value within the community.

Green credit is not just a financial product, but also a commitment to accompanying customers on their journey towards sustainable development. When a household invests in a waste treatment system, when a production facility chooses environmentally friendly materials, or when an individual decides to invest in renewable energy... these are all small steps with great significance for the future of the community. Through green loan capital, Thanh Hoa Microfinance is contributing to creating a responsible financial ecosystem where economic efficiency goes hand in hand with environmental and social benefits.

Text and photos: Hoang Linh

Source: https://baothanhhoa.vn/von-vay-xanh-dong-chay-nbsp-tai-chinh-nhan-van-284191.htm