Social Policy Bank of Binh Duong Province always strives for poverty reduction

15 years after establishment decision of Social Policy Bank of Binh Duong Province (2002-2017), the bank has made strong development steps. The Bank has promoted the role of transferring policy credit funds to poor households and other policy beneficiaries, contributing significantly to the socio-economic development of the province.

Leaders of Social Policy Bank - Thuan An Town branch visited a business model borrowing loans to create jobs in quarter Thanh Loi, An Thanh Ward, Thuan An Town.  

Giving strength for the poor

Family of Nguyen Van Huu (in Ca Na hamlet, An Binh commune, Phu Giao district), was a poor household in 2010. Due to the support of Social Policy Bank - Phu Giao district branch, Saving and loan group in the locality, Mr. Huu borrowed VND50 million to plant pepper trees. With 5,000m2 of land, his hard working and are Saving and loan group’s instructions on planting pepper, his family escaped from poverty, become a better off household with a stable income over VND300 million/year.

At present, the province has many good models of farming household. Social Policy Bank plays an important role in helping many families get out of poverty and get rich right at their hometown. The policy fund has helped households in the province change their perception; encourage them to confidently eliminate poverty. Along with that is the support of levels, sectors, localities, members of Saving and loan groups, which were established by political - social organizations, to assist households in economic orientation, shifting models of crops or livestock. This is an important foundation for difficult households to improve their family economy step by step.

Mr. Vo Van Duc, Director of provincial Social Policy Bank, said that in the past 15 years, the bank had closely followed programs and plans of the Central Government, poverty reduction and socio-economic development targets of the province; cooperated with branches, associations, unions to receive funds and timely transfer credit funds to hundreds thousand of poor households and other policy subjects safely, economically and efficiently.

Making the best of funds

As of August 31, 2017, provincial Social Policy Bank and 4 socio-political organizations in the province established 1,599 Saving and loan groups spreading across 91 communes, wards and townships in the province, managing nearly VND1,593 billion of outstanding loans, equivalent to 97% of total outstanding loans, but bad debt ratio is very low (0.32% of total outstanding loans).

The above method of entrustment has proved itself as a right direction. Accordingly, the public review of households to borrow capital has promoted the role of associations, unions to ensure the transfer of funds to right beneficiaries in the fastest, most effective manner, contributing to publicity and socialization of Social Policy Bank’s operations; promoted power of the entire political system, mass organizations and unions to help people access and enjoy the preferential credit policies of the Government. In addition, mass organizations can combine this entrustment with other political tasks, contributing to reducing social costs, helping poor households and policy beneficiaries access financial services of Social Policy Bank quickly, smoothly, safely and effectively...

Mr. Duc said, at the time of its foundation, the branch took over 2 credit programs, including loans to poor households and job creation loans, with total outstanding loans of VND42.76 billion. Currently, the branch has implemented 12 credit programs. Regarding the implementation of credit programs contributing to the national target program on poverty reduction, new rural construction, social security, every year, the branch joins hands with localities to build new rural areas by gathering credit capital to help localities soon reach new rural construction targets. As a result, the average borrowing rate increased from VND 2.1 million / household to VND23.9 million / household.

In 15 years, despite of difficulties, the staff of provincial Social Policy Bank has made every effort to fulfill their assigned political tasks. With the continuous increase of capital, stable credit quality, low bad debt ratio... provincial Social Policy Bank has successfully solved the capital need of poor households and policy beneficiaries for production and business development. These results have contributed to enhancing people's belief in Party leadership and authorities at all levels on social life, especially the work of ensuring social security…

Reported by Thanh Hong – Translated by Ngoc Huynh

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