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Updated: 2024-05-17 14:40:45

Policy credit source creates motivation for Veterans to get out of poverty

Recently, through loans from VBSP Song Hinh district (Phu Yen), many Veterans members of Ea Bar commune have boldly made production, helping increase their income and stabilize their lives.


Mr. Chu Ba Ky - Veteran (on the right hand) effectively used policy credit to develop orchards

Useful credit source

After leaving the army, in 1995, Mr. Chu Ba Ky and his family moved to Song Hinh. At that time, the Ea Bar commune did not have paved roads, making difficulties in traveling and transporting agricultural products. However, with the qualities of Uncle Ho's soldiers, this officer is always determined to rise out of poverty. The initial preferential loans from VBSP became a foundation to help him develop his family's economy.

Mr. Ky said: "Initially, I borrowed VND 10 million, then VND 20 million to raise pigs, raise cows and grow rubber. Doing business effectively and repaying debt on time, I was created favorable conditions for lending when needed". According to Mr. Ky, in 2017, his family's rubber garden was affected by the storm and collapsed a lot. However, he picked himself up and learned about other production models. Mr. Ky re-planned the garden land and divided 1.5 hectares to grow passion fruit, 1 hectare to grow cassava, 1.5 hectares to grow macadamia trees and 2 hectares to grow durian.

“At that time, we continued to receive VND 50 million from VBSP Song Hinh District to pay for labor, electricity costs and water pump oil.  Therefore, we had more motivation to focus on economic development", Mr. Ky shared.

Also receiving policy credit loans, up to now, Mr. Tran Cong Cung (in Ea Mkeng village) has still effectively used loan from VBSP Song Hinh district. Mr. Cung said that in 2007, his family started taking a loan of VND 20 million from the program for production and business households in disadvantaged areas. After paying off his debt, his family continued to be facilitated to re-loan and then took new loans for programs of rural safe water and environmental sanitation, disadvantaged students and job creation.

Desire to increase loan level

According to Mr. Kpá Y Toan - Chairman of Ea Bar Commune Civil Service Association, in recent years, the association has always closely followed the guides of superiors, coordinated closely with VBSP Song Hinh district to perform well in trust capital management. The Association has required Savings and Credit Groups to transparently carry out loan review work, ensuring that policy loans reach the right people and borrowers use loans for the right purpose. The Association pays specially attention to vulnerable members so that they could get timely loans.

To date, the total outstanding loans managed by the Ea Bar Commune Veterans Association has reached VND 8.5 billion with 130 active borrowers, an increase of VND 473 million compared to the beginning of the year; overdue debt has been only VND 5 million. Thanks to VBSP’s loans, many member households in Commune Veterans Association have gradually developed production and risen out of poverty. Especially in Ea Mkeng village, 35 veteran households no longer are the poor and near-poor households.

With the effectiveness of policy credit, veterans in Ea Bar commune expressed their hope that in the coming time, the Government will continue to increase lending levels and maintain preferential interest rates so that local people have more motivation for their economic developments.

According to Mr. Tran Van Thanh Minh - Deputy Director of VBSP Song Hinh District, the unit always creates all conditions to effectively promote preferential credit, contributing to improving the lives of the poor households and other policy beneficiaries. In the coming time, the unit will continue to prioritize credit sources to support the poor veteran households, near-poor veteran households, post-poor veteran households, veteran households in disadvantaged areas... for their production and lives improvement.

Le Hao



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year