Getting better thanks to borrowing to raise chickens

(VBSP News) Being a particularly disadvantaged border commune in Tuyen Hoa district (Quang Binh), thanks to preferential loans through VBSP, in the past years, Thanh Hoa Farmers' Association has actively coordinated to channel policy credit capital to farmers' members, especially poor members who borrow money to invest in production and business development to escape poverty sustainably.

Farmers in Thanh Hoa commune borrow preferential loans to invest in raising chickens in gardens and hills

Determining that the task of cooperating with VBSP to channel loans to poor farmers for economic development to escape from poverty and to become rich is one of the important tasks of the Association, in the past years, the Thanh Hoa Farmers' Association has advised the Commune Poverty Reduction Committee, the Commune People's Committee to establish 12 Savings and Credit groups and assigned the Association to manage these groups with nearly 600 members.

In the first 6 months of 2019, total lending of VBSP through the Association reached  VND 3,064 million, with 79 turns of borrowing and an average loan size of VND 38.8 million. Up to now, the total entrusted loan outstanding managed by the Association is VND 25,517 million, with 549 active borrowers and an average loan outstanding of VND 46.5 million. On average, each Savings and Credit group manages total loan outstanding of VND 2.1 billion. According to the survey to evaluate the effectiveness of investment, most of the members uses borrowed capital effectively for the right purposes.

Along with loan disbursements, the Association has actively coordinated and propagated on the policy of making monthly savings deposit through Savings and Credit groups to create accumulated capital to pay debts and pay interest when facing difficulties, up to now, over 96% of the members has taken part in savings with the amount of VND 424 million, on average each SCG has a saving balance of VND 35 million.

A typical borrower who has used his loan effectively is Mr. Hoang Ngoc Xuan in Village 4 Thanh Lang. He borrowed money from VBSP district with the amount of VND 70 million to invest in a complex model of garden-pond-cage to raise cows, chickens, freshwater fish, honey bee and fruit trees, creating jobs for 3 workers.Every year, after deducting expenses, his income is from VND 70 to 80 million.

Mrs. Phan Thi Bich Hoa's household in Bac Son village 4, borrowed VND 50 million from Loan to the poor program to invest in raising breeding cows, planting grass as a food source for cow which brings an annual income for families from VND 40 to 45 million.

In the coming time, the Commune Farmers' Association will continue to coordinate with the district VBSP to urge interest collection to minimize overdue interest, strengthen inspection and supervision. Especially, supervising members in using capital, ensuring loan utilization for the right purpose, thereby promoting loan efficiency and ensuring debt repayment capability, promoting communication for members to participate in saving deposit with higher saving amount, creating conditions for poor members to get loans and gradually accumulate to repay loans, limit the pressure on debt repayment once due.

Tat Thanh