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Updated: 2019-01-24 14:26:54

Preferential loans, "leverage" for people of Tu Mo Rong to escape poverty

(VBSP News) In recent years, VBSP Tu Mo Rong district (Kon Tum) has facilitated timely channeling preferential capital to poor households and policy beneficiaries, contributing positively to the local poverty reduction. Thanks to the capital, poor households at the locality have more conditions to invest in production, household economic development, increase income and escape from poverty.

Hộ nghèo ở Tu Mơ Rông phát triển cây dược liệu để thoát nghèo

Poor households in Tu Mo Rong develop medicinal plants to escape poverty

Tu Mo Rong is a poor district, people's lives are difficult; therefore, the demand for capital to invest in production development of households in the area is very large. Being aware of the situation, in recent years, VBSP Tu Mo Rong district actively cooperates with Commune People's Committee, mass organisations to implement measures to channel preferential policy credit to grassroots level through entrusted lending. Among which, priority of policy credit is given to poor households, policy beneficiaries and near poor households in disadvantaged areas and areas facing difficulties in accessing credit for business and production development.

Up to now, the total outstanding loans of policy credit programs in Tu Mo Rong district have reached more than VND 173 billion with more than 6,700 active customers in 137 Savings and Credit groups. In which lending to poor households accounts for the largest proportion with over VND 100 billion. Most borrowers focus on investing in production and livestock development etc.

Director of VBSP Tu Mo Rong district, Truong Quang Tri said: In recent years, the unit has always closely followed the guidance of VBSP, local authoritiest to create favorable conditions for people to access policy credit capital. Every month, through 11 transaction points in the commune, we send staff to the commune to organize transactions, communication and provide banking services, conducting disbursements, lending, debt collection etc. This helps saving travel cost for borrowers and create solidarity with the locality at the same time.

“Through transaction at the commune, we also get opinions of local authorities and recommendations from the people to improve operation efficiency, actively contributing to local poverty reduction. Besides, we cooperate with mass organisations to regular monitor loan using purposes and loan efficiency” said Truong Quang Tri.

According to Mr. Tri, in recent years, in addition to creating conditions for people to borrow capital, use capital to develop industrial crops, livestock and business, VBSP Tu Mo Rong district also give priority to poor households borrowed money to invest in developing medicinal plants suitable for local weather and soil conditions such as Codonopsis pilosula ginseng, Ngoc Linh ginseng and Angelica sinensis ... Policy credit loans were contributing to increasing the number of households escaping from poverty in Tu Mo Rong district over the years, in 2106, 365 households escaped from poverty and the number in 2017 was 401 households.

Visiting the family of Y Blut in Tu Bung village, Ngoc Lay commune, she said that in early 2016, she borrowed VND 50 million from VBSP district to invest in planting 1440m2 of Codonopsis pilosula and 720 m2 of Angelica sinensi. After 2 years, besides full debt repayment, her family has more stable income, making living less difficult than before.

A Moc family in Mang Rong 1 village, Ngoc Lay commune also borrowed money from VBSP to invest in production and gradually rose to escape poverty. Previously, A Moc's family economy relied only on upland fields, growing cassava, with low efficiency. Approved by the SCG of them village to borrow VND 50 million from VBSP Tu Mo Rong district, A Moc family has invested in growing coffee. The remaining capital he bought 720 m2 of Codonopsis pilosula and Angelica sinensi. Each year his family earn tens of millions profit.

"Last year, from Angelica sinensi, my family earned VND 30 million, plus 1,500 coffee plants with more than 4 tons of products gave us several tens of millions. That's not to mention collection from Codonopsis pilosula. Thanks to the VBSP district's capital, my family life has changed so much, more stable and escaped from poverty ”, A Moc confided.

Mr. Dang Quoc Dung - Chairman of Ngoc Lay Commune People's Committee said: Up to now, total loan outstanding of policy capital in the commune is over VND 10 billion. There are currently 2 mass organisations of the locality, i.e. the Farmers' Association and the Women's Union managing 11 Savings and Credit groups with a total number 350 households borrowers. From these sources of capital, through inspection and monitoring, borrowers all use capital for the right purpose, mainly investing in agricultural production; mostly growing coffee and medicinal plants. Policy credit has really brought efficiency, helping people to invest in buying seedlings to develop production and thereby contributing to improving income, speeding up the progress of sustainable poverty reduction.

Phuc Nguyen - Kon Tum News




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