Phu Tho: Credit preference for production and commercial households

DNHN - In recent years, the Bank for Social Policies (VBSP) in the province has implemented a preferential credit program, creating the conditions for individuals in disadvantaged areas to borrow capital for economic development. economic.

In the province of Phu Tho, there are 31 communes in difficult areas, 26 communes with special difficulties, and 240 areas with special difficulties; over 200,000 ethnic minorities make up 14% of the province's population, primarily in the Tan Son, Thanh Son, and Yen Lap districts...

For the program's capital to cover all regions and beneficiary regions, the Provincial Branch of the Social Policy Bank has made efforts to implement solutions, particularly in remote, isolated, and ethnic minority areas.

On the specified date, the Social Policy Bank of each commune sets up transaction points and organizes direct transactions. Bank personnel will directly assist households in developing production plans and preparing documents by regulations to qualify for loans. Additionally, propaganda is disseminated through organizations and unions. For extremely difficult villages, bank personnel went door-to-door to disseminate and advise residents to raise awareness and determine investment opportunities.

In the mountainous district of Tan Son, there are 17 communes and 172 residential areas, of which eight communes are located in Zone III, three communes are located in Zone II, and six communes are located in Zone I, with 97 areas experiencing special difficulties. Director of the Bank for Social Policy of District Tang Tien Sy remarked, "With such difficulties still present, the credit program in troubled areas is truly a "savior" for the people. In the past, the District Bank for Social Policy has exerted considerable effort to provide preferential capital to regions with numerous challenges. The district's loan program for production and business households has a total outstanding loan balance of over 133 billion VND with over 3,100 borrowers, while the business loan program has a total outstanding loan balance of nearly two billion VND with 41 borrowers.

There are 17 communes and 186 residential areas in the mountainous district of Yen Lap, including 11 communes and 126 disadvantaged areas. Mr. Tran Xuan Hue, Deputy Director of the District Bank for Social Policy, stated that this is an open credit channel for the district, enabling many families to create stable jobs with capital. The current state of the credit network ensures that households have easy access to the program's capital. There are currently 3,153 production and business households in the region with outstanding loans totaling nearly 136 billion VND, as well as 87 traders operating in difficult areas with outstanding loans totaling nearly four billion VND.

After more than 15 years of implementing the preferential credit program in challenging areas of the province, the total outstanding loans under Decision 31 have reached over VND 693 billion, with more than 15,500 households still owing money. According to Decision 92, nearly 13 billion VND in outstanding loans are held by 268 households. The program has assisted production-business households and merchants in disadvantaged regions in acquiring additional resources for economic development.

Mr. Truong Viet Phuong, provincial director of the Bank for Social Policies, stated, "To meet the loan needs of households in difficult areas, the Prime Minister issued Decision No. 17/2023/QD-TTg on credit in difficult areas on June 5, 2023. Effective as of August 8, 2023, a decision amending and supplementing several articles of Decision 31 and Decision 92. Consequently, the maximum loan amount at the VBSP for a production and business household in a difficult area will increase from 50 million VND/person to 100 million VND/person, with an annual interest rate of 9 percent. The maximum loan amount for individual traders is 100 million VND per individual. Previously, individual traders who did not maintain accounting records and paid a flat tax rate were restricted to borrowing no more than 30 million VND per person. The maximum loan amount for traders that are lawfully established economic organizations has increased to one billion VND/organization from 500 million VND/organization.

P.V