Bank for the poor

Currently, the number of customers are in credit relation with VBSP in Khanh Hoa province reaches nearly 94 thousand customers. Eligible customers of the bank’s loans including poor households, policy beneficiaries, disadvantaged students and borrowers for job creation are supported with interest rate. Therefore, VBSP’s Khanh Hoa branch is called “Bank of the poor” by many people with great affection.

In previous years, the economic condition of Ms. Ca Tam’s family (Son Thai commune – Khanh Vinh district) was in difficulty due to lacking of capital for production. In 2005, she boldly borrowed VND 5 million from VBSP for production. With that initial capital and with the motto “using the short-term for investing the long- term”, her family planted wheat, corn and rice, etc, gradually apart from paying the principal for the bank, she also had money to reinvest into production. She said owing to the bank’s loans, besides sending her children to school, she also can buy some expensive furniture like motorcycle, television and refrigerator. Currently, her family plants one hectare of acacia one hectare of corn one hectare of wheat one hectare of rice bringing about an average income of  tens of million dong per year. Similar to the family of Ms. Ca Tam, many ethnic minority households in Khanh Vinh mountainous districts also develop family economy, escaping from poverty thanks to  VBSP’s loans. 

Over the years, although facing many difficulties due to heavy work-load, insufficient staffs (only 95 officers with few experience in the whole branch), etc,. under the leadership of the Party cell, the staffs of the branch are all in consensus to overcome difficulties, complete successfully all assigned tasks. In 2003, the branch was established with only two initial credit programs equal to the total outstanding loan of VND 140 billion; in 2005, implementing five credit programs and now the branch are deploying 10 credit programs with the total outstanding loan of over VND 1,000 billion; the annual average growth rate is nearly 37%, the overdue debt in 2005 accounted for 2.6% but at the end of 2009 reducing to only 1.1%. The local budget fund transferred to the bank for lending to poor households and other policy beneficiaries has increased significantly: VND 21.5 billion in 2005, VND 81.6 billion in the end of 2009.

Mr. Bui Cong Meo- Director of VBSP’s Khanh Hoa branch said that: “over five years, the local budget fund has been increased by 4.2 times, outstanding loan increased by 4.7 times, etc,. which has assisted poor households and policy beneficiaries with capital for doing their business and improving living standard; supporting more than 22 thousand disadvantaged students with loan for their studying. Therefore, making contribution to effectively implementing the target of poverty reduction, ensuring social security in the local areas. In order to obtain these results, the Party cell of the branch always complies with the regulations combining with professional activities; taking care of educating awareness, attitude of serving customers for all staffs, especially for credit officers and treasurers”.

To create favorable conditions for borrowers in disadvantaged communes, the branch has set up 124 transaction points in communes, wards all over the province. Every month, the mobile banking cars come directly to communes and have transactions on the fixed dates, including Saturdays, Sundays so that borrowers can remember the transaction dates and saving transaction costs. With high responsibility and enthusiasm, VBSP’s Khanh Hoa branch deserves to be the solid prop for the poor. The close and active leadership of the Party cell to the real situation is a key factor for the branch to complete successfully its assigned tasks.