Hope for poor households

To bring resolutions on agriculture, farmers and rural areas into daily life, VBSP Ha Noi has implemented a range of specific supports, contributing to reduce over 2,000 poor households and averagely 2.34% poverty rate of city each year.

Director of Hanoi Branch went to check client's loan usage Quyet Thượng hamlet, Dong Son commune, Chuong My district

Procedure simplification

Mr. Bùi Quang Vinh, Director of HanoiBranch told that loan procedures for poor households is increasingly simple, decreasing unnecessary paper volume and inconvenience. By coordinating with mass organizations well in partially entrusted lending through Farmer Union, Women Union, War Veteran Union and Youth Union, loans are disbursed to right poor households. The borrowers are supported with consultation and supervision of using funds for proper and effective purpose. At this time, VBSP collaborated with 04 mass organizations to form 7,651 Savings & credit Groups, 230,067 active borrowers with total outstanding loans of VND 2,418 billion, making up 86% of total portfolios. SCGs comment on lists of poor households and submit to Commune Board of Poverty Reduction for certification in order to prepare loan applications. Poor households only need to make their requests for borrowing and , once improved, receive borrowing books. The borrowing books can be used for either credit programs as Poor Households, Rural Water Supply and Sanitation, Housing Purpose, Job Creation, Disadvantaged Students etc,.  the poor households can borrow loans and repay interests only in communal mobile transaction points.

So far, VBSP Ha Noi has opened 440 transaction points covering communes for loan disbursement and interest collection, creating convenience for poor households. Different from before, loan procedures are now very simple, suitable with capabilities of poor households, without collaterals and going far. Borrowers are lent credit rapidly for investing in to animal husbandry and production. Besides, the loan size is adjusted maximum from VND 20 to 30 million. In average, each household borrows VND 10.47 million that is appropriate with their businesses. Up to now, VBSP has completed changing its customers’ borrowing books and delivering receipts of interest collection after reviewing borrowers’ files  and consolidating SCGs etc., which ensures smooth management and procedure simplification at the lowest level. Ms. Nguyễn Thị Linh, SCG leader of Yên Kiện village, Đông Sơn commune, Chương Mỹ district told: "The lending procedures and regime are now simply, poor households are very happy to do transactions with the bank in communes. From 2002 to now, the group run very well and helps 10 households get away from poverty".

"Midwife" of the poor

In addition to the funding source for lending to poor households, the outstanding loans have reached VND 1,093 billion, accounting for 86% of total loan portfolios. Poor households and other policy beneficiaries also enjoy several other preferential credit programs to improve living standard and gain opportunities for escaping from poverty. Mr, Chu Phú Mỹ, Chairman of People's Committee in Phú Xuyên district affirmed that the VBSP loans is really the "midwife" of poor households, considerably contributing to implementing the target of economic development and poverty reduction, ensuring social security and improving living standard for the poor. Doctor Trần Xuân Việt, Director of Department of Agriculture & Rural Development in Hanoi said that The VBSP credit plays a great role in supporting the triple farming program, helping development of household economy equally, eradicating poverty and hunger in rural areas. At this moment, VBSP Ha Noi has gained total outstanding loans of VND 2,683 billion, the overdue debt rate merely makes up 0.38% that demonstrate straightforwardness and self-confidence of poor households in production and poverty reduction.

Ms. Nguyễn Thị Hiệt, living in Yên Kiện hamlet, Đông Sơn commune, Chương Mỹ district has borrowed loans from VBSP three times in order to raise pigs, getting away from poverty so far, confided "VBSP has provided "fishing rod" for poor households to earn livings and improve incomes". When meeting with misery and difficulty, Ms. Hiệt received preferential loans for pig production; when her daughter passed an entrance examination into University of Forestry, she borrowed VND 24 million for tuition fees and other studying expenditures. Up to now. The Chương Mỹ district remains 10,602 poor households, reaching 14%.

This year, VBSP Chuong My strives for a reduction of 2,560 disadvantaged households, fundamentally removing poverty in locality. Mr. Đỗ Duy Tâm, director of Chương Mỹ Transaction Office told that the VBSP credit has helped basically disadvantaged households eligible for borrowing. They are also advised technology and supported ways of doing business and production via joint liability group. As a result, after two or three times of borrowing, disadvantaged households have released from poverty.

For the year 2010 objective, the VBSP Branch of Hanoi endeavors to respond with borrowing demands, decreasing 22,500 poor households, downing poverty rate to 5%, creating jobs for over 3,500 labors, improving downgraded houses for 800 households, helping more than 65 thousand disadvantaged students borrow education loans, making a remarkable contribution to socio-economic development and poverty alleviation in a sustainable and effective manner.

Hạnh Tú - New Hanoi Newspaper