New life from small loan

(VBSP News) Over the past time, the VBSP branch in An Duong district, Hai Phong city has provided loans for HIV patients, households, rehabilitated drug abusers, persons undergoing opioid replacement therapy and reformed prostitutes.

We visited the economic development model of the borrower Bui Van Tuyen, born in 1987 in Quynh Hoang 2 hamlet, Nam Son commune. He is a rehabilitated drug abuser undergoing Methanol replacement therapy. He applied for VND 30 million from the bank for economic development.

Tuyen was enticed in drug addiction by his friends. With concern and encouragement from family and community, in 2009, he voluntarily detoxified at home many times but got failure. When the locality launched the program of Methanol replacement therapy, he was the first person to determine follow this way. Following this effective treatment, he gradually recovered health and decided to rebuild life to help for family. He worked as a seasonal plough job in nearby villages and also invested in cattle farming.

With the willingness of economic development but lack of capitals, he applied a loan from the transaction office of An Duong district. Now he has got 20 pigs, 200 ducks and chickens.

He happily said to us “Thanks to VBSP loan has helped me more determination to start production and overcome bad enticement”.

The Director of the district transaction office said: in the next time, the bank will continue to coordinate with savings and credit groups at locality to consider and approve more loan applications, helping HIV patients, households, rehabilitated drug abusers, persons undergoing opioid replacement therapy and reformed prostitutes access financial inclusion to develop business, production, contributing to poverty reduction and social security.

Summary on the credit program for HIV patients, households, rehabilitated drug abusers, persons undergoing opioid replacement therapy and reformed prostitutes

Borrowing purpose

a) Procurement of supplies and livestock, poultry feed, labor tools, goods and facilities to serve business and sale.

b) Investment on producing crafts in the households such as purchasing production materials, labor tools, machinery and equipment.

c) Capital contribution to implement business, production plans with other individuals and organizations.

Borrowers

a) Individual customers

- HIV-positive person;

- Rehabilitated drug abusers;

- Persons undergoing opioid replacement therapy

- Reformed prostitutes.

b) Household customers 

The household has got a member who belongs to one of the following cases:

- HIV-positive person;

- Rehabilitated drug abusers;

- Persons undergoing opioid replacement therapy

- Reformed prostitutes.

c) Where individuals and households (hereinafter referred to as the borrower) who belong to the criteria of borrowers at point a and b, Clause 3 of this document, are also borrowers from other preferential credit programs of VBSP, they will be only considered for a loan under this document or one of the other preferential programs in VBSP.

Borrowing condition

 a) Individual

 - Personal conditions

 + Those defined in Item 1, Point a, Clause 3 of this document must have a result of positive HIV in medical centers where are eligible for confirming positive HIV cases;

 + Those specified in Item 2, point a, Clause 3 of this document have finished dose timing and have a stable duration of treatment from over 3 months, certified by the in-charge person in a treatment center.

 + Those specified in Item 3, Point a, Clause 3 of this document must be certified not to return sex job by the Chairperson of the communal People's Committee or a leader in one of local mass organizations or club leader, group leader, head of mass organization network or a legal entity.

 - To have legal residence and live permanently in the locality where borrowing the loan.

 - To have a plan for production and business and enable to repay the debt as committed.

 - To be a member of savings and credit group of VBSP.

 - To live alone or live with children under labor age or live with parents, spouses, children, grandparents, brother, sister, but these people were too old to work or no longer have work capacity in accordance with the law.

 b) Household

 - The household whose members defined in Item 1, 3, 4 Point b, Paragraph 3 of this document must meet one of the conditions specified in Item 1, point A of this paragraph.

 - The household whose members specified in Item 2, point b, paragraph 3 of this document must have one of the following documents:

 + Decision to apply measures to manage post drug treatment in residential locality.

 + Certificate on completion of the detoxification period in compulsory rehabilitation center.

 + Verification of communal People’s Committee on complying with the addiction time in family and community from over three months.

 - To have legal residence and live permanently in the locality where borrowing the loan.

 - To have a plan for production and business and enable to repay the debt as committed.

 - To be a member of savings and credit group of VBSP.

Loan size 

The loan size is subject to needs and ability to repay loans of individuals, households and has no collateral but does not exceed the loan in accordance with the following provisions:

a) Individual: VND 20 million/individual at maximum;

b) Household: VND 30 million/household;

c) A borrower could borrow loans many times but total outstanding loan does not exceed the maximal loan size as stipulated above.

Loan term

a) In the pilot period of 2014 – 2016: apply the maximal loan term of 36 months and 60 months since 2007.

b) The specific term for each borrower is subject to the agreement between VBSP and customers based on the production, business cycle and repayment ability.

Interest rate

a) The loan interest rate is the same as the lending rate of poor households in each period as specified by the Government.

b) The penalty interest rate for late repayment is 130% of the loan interest rate.