Raising the maximum lending level for poor households to offer opportunities for the poor households to invest in production and business development

Implementing Decision No. 12 of the Board of Social Policy Bank on raising the lending rate and maximum loan term for poor households from VND 50 million a household to VND 100 million a household, not to Borrowing money, Binh Duong has implemented and well implemented this decision. This is one of the solutions to help poor households have enough capital to invest in production and business development.

People are excited

Wishing to increase production, invest in raising pig biosafety technology process but in the past years, Mr. Nguyen Van Bay in An Linh commune, Phu Giao district lacks investment capital. Being informed by local officials that his family has been able to raise production and business loans from VND 50 million / household to VND 100 million / household, Mr. Bay is very excited. In the past, his family was poor and had just escaped poverty in 2017. Mr. Bay said: “Many times I intend to invest in raising pigs under biosecurity process but lack of capital so I don't have to pay enough costs. Although the State and the province have the support, however, the amount of loan support is much lower than the amount of investment costs so I'm hesitant. If I increase the level of loan support, I will be determined to invest in raising the biosafety technology process and joining the Service Technology Cooperative in Phu Giao district to learn more experiences ”.

Transaction Office of Vietnam Bank for Social Policy. Thuan An disburses loans for the poor

Talking about Decision No. 12 of the Board of Social Policy Bank, Mr. Le Minh Quoc Cuong, Director of Department of Labor - Invalids and Social Affairs said: “This is really a breakthrough solution, is opportunities for many poor, near-poor and poor households to invest in production and business are no longer obsessed with capital shortage. In particular, the increase of the limit implemented simultaneously with the increase of the maximum loan term will create conditions for households to boldly shift crop structure and economic development. Increasing the preferential loan amount to a maximum of VND 100 million, better meeting the capital needs of poor households, contributing to repelling black credit.”

Holding to 5-year loan term

Not only did the loan increase, in Decision No. 12 of the Board of Social Policy Bank also raised the maximum loan term to 120 months for poor, near poor, poor households to match the process. growth and development of long-term investors. However, in Binh Duong, the maximum loan term is 5 years. Explaining this issue, Mr. Vo Van Duc, Director of the provincial Bank for Social Policy said: “According to the provisions of Document 866/NHCS-TDNN, the maximum loan term for programs for borrowing from poor and near poor households is 120 months. However, the loan capital for these programs at Binh Duong branch is equal to the local budget, with a mandate period of 5 years, so the maximum term of lending is 5 years until the system signing the appendix of investment trust contract with the Department of Finance to increase the term of capital entrustment to 10 years ”. Previously, the provincial Bank for Social Policies had a report, asking to adjust the time limit for entrusting local budget capital. Specifically, please transfer the entire local budget (province and district) entrusted to the form of trust fund with indefinite term.

Through review of the report, Mr. Ha Van Thuan, Deputy Director of the Department of Finance said: “Binh Duong Social Policy Bank is a central management unit, therefore the capital source of the unit for the objects follows, programs arranged by the central government. Binh Duong province has no poor households, nearly poor households, escapes poverty according to the central criteria, so the central capital is not arranged to lend to these subjects. The Department of Finance balances the budget, advises the Provincial People's Committee to allocate trust funds to the provincial Social Policy Bank to implement the province's poverty reduction goals. Regarding the time limit for entrusting capital, this is credit capital, not supplementing the charter capital for the Bank for Social Policy, so it is necessary to determine the term of entrustment in the contract. Currently, entrusted capital is transferred to the provincial Social Policy Bank in accordance with Circular No. 11/2017/TT-BTC and Decision No. 2542/QD-UBND. When the contract expires, in case the province still has poor households, near poor people, escapes from poverty and other subjects according to local criteria, the Department of Finance will balance the source and advise the Provincial People's Committee to continue entrusting the trust. the deadline for the provincial Bank for Social Policies to implement the province's poverty reduction goals.”

Along with the content of the 5-year loan period, in case the borrower belongs to the credit programs that are using the loan effectively, pay the interest on time according to the agreement, if any. To borrow more capital to implement production and business plans, it is feasible to apply for additional loans but the debt balance does not exceed VND 100 million a household.

Reported by Kim Ha – Translated by Vi Bao