Drug-detoxified people are supported to borrow loans from VBSP

(VBSP News) The Prime Minister has just issued Decision 02/2020 (Decision 02) amending and supplementing Decision 29/2014 on policies to support loans for people who are infected with HIV, people who are after drug-detoxification, people who are treated for drug addiction by alternative drugs and people who were prostitutes.

This is a credit policy to support the disadvantaged groups in the society

According to Decision 02, this policy will continue to be piloted in 15 provinces and cities (Dien Bien, Son La, Lao Cai, Hoa Binh, Hanoi, Hai Phong, Thanh Hoa, Nghe An, Da Nang, Quang Nam, Dak Lak, Ho Chi Minh, Can Tho, Hau Giang and Bac Lieu) until December 31, 2020. Compared with Decision 29/2014, Decision 02 has a number of new points on loan procedures and capital.

Specifically, the loan capital is taken from the state budget of 50%, the remaining 50% is from VBSP and other legal sources of mobilization. This contributes to reducing the burden on the state budget. Regarding the loan procedures, the borrower is representative for his/her family to take responsibility in all transactions with VBSP.

Target customers are people who are infected with HIV, people who are after drug-detoxification, people who are treated for drug addiction by alternative drugs and people who were prostitutes. The maximum loan size is VND 20 million for an individual and VND 30 million for a household. During the pilot period, the maximum loan term is 36 months.

In order to borrow the loans, customers must have a permanent residence or have registered long-term residence in the area where a VBSP’s Branch Office locates. Besides, they also have feasible business & production projects and full capacity to make repayments as agreed commitments.  

The borrowers must be members of VBSP's savings and credit groups. They live alone or live with children under working age or live with parents, spouse, grandparents, siblings who are over working age or incapable of working as prescribed by law.

In addition, as for HIV-infected people, they have to have HIV-positive test results from eligible testing establishments. As for people who were prostitutes, they have to have a confirmation that they are no longer prostitutes of the Chairman of Commune People's Committee or the head of one of the local mass organizations or group leaders, etc.

Regarding the lending process, the borrower first writes down a loan application included a plan for using the loan (according to the VBSP’s form) to send to the savings and credit group. After that, the group leaders send the applications to Commune People's Committee for verification, then send them to VBSP. VBSP’s officers check and verify the validity and exactness of the applications. For eligible plans, Director of the VBSP’s Branch Office will sign for approval to disburse.

This is a meaningful credit program because these beneficiaries are marginalized and vulnerable, who need help to improve their lives. This program has helped them gradually become more confident and easily integrate into the community, contributing to security stability and social order for the country.