Effectiveness of rural clean water and environmental sanitation loan program

Clean water and environmental sanitation (WSS) in rural areas are indispensable needs in the daily life of every family and are an important factor in protecting human health. This is also an important criterion in the National Target Program on New Rural Development. Determining that, in recent times, the Provincial Branch of the Vietnam Bank for Social Policies (VBSP) has actively implemented the loan program for WSS, ensuring quick, timely disbursement, in accordance with business procedures.

With loans from the district's Social Policy Bank, many households in Huong Non commune, Tam Nong district have invested in clean water storage systems to ensure daily life.

The Social Policy Bank has closely coordinated with sectors and localities, especially mass organizations, to propagate and promptly convey information on changes in loan limits, beneficiaries, terms, and purposes of capital use to borrowers. The implementation process has been closely carried out from the credit planning stage to loan implementation, creating favorable conditions for people to access capital sources. In addition, the system's network of operations has developed widely, credit quality has been improved; the activities of savings and loan groups and transaction points at commune levels have served well the people's debt repayment of interest and principal when due, promptly meeting the needs of households with economic difficulties who want to invest in building clean water and sanitation works according to standards.

This preferential capital source has contributed to increasing the rate of households in Thanh Thuy district using clean water and sanitation facilities, ensuring a living environment. Ms. Vi Thi Phuong Dung - Director of the district's Social Policy Bank said: The unit always takes advantage of all resources to accompany the locality to complete the criteria on clean water and sanitation, actively expanding the lending subjects so that households can access and use preferential capital. The rural clean water and sanitation loan program changes awareness, forms a cultural and civilized lifestyle, and raises people's awareness of preserving and protecting the environment. From there, the quality of life of people in rural areas is improved, promoting local socio-economic development.

Up to now, the outstanding loan balance of the rural water and sanitation program in the whole district has reached more than 126 billion VND with 6,576 households receiving loans. The program has helped people promote their internal strength in solving the problem of water and sanitation, households have combined the loan capital to invest in water tanks, wells, bathrooms, and septic tanks.

Not only in Thanh Thuy, from the loan capital of the rural water supply and sanitation program, localities in the province have also built many clean water and sanitation works that meet standards. According to data from the provincial branch of the Vietnam Bank for Social Policies, since the implementation of the rural water supply and sanitation credit program under Decision No. 62/2004 dated April 16, 2004 of the Prime Minister, up to now, the capital has supported more than 277,600 poor households and policy beneficiaries to access and invest in over 494,000 rural water supply and sanitation works. Currently, the outstanding loan balance of the program in the whole province is nearly 1,255 billion VND, accounting for 20.29% of the total outstanding balance with 65,300 households still in debt.

Mr. Nguyen Thanh Tinh - Deputy Director of the Provincial Branch of the Vietnam Bank for Social Policies said: The Prime Minister has just issued Decision No. 10/2024/QD-TTg dated July 15, 2024 on credit for rural NS&S. This is good news for beneficiaries because from September 2, 2024, the loan amount will be increased to a maximum of VND 25 million for each project for one customer. Thus, customers borrowing capital from this program can borrow up to VND 50 million instead of only VND 20 million as before. The loan interest rate is 9%/year and the loan term is agreed upon by the Vietnam Bank for Social Policies with the customer but is a maximum of 60 months.

According to Mr. Tinh, this policy is very important, promoting the people's strength according to the motto "The State and the People work together", contributing to improving the quality of life, protecting people's health, and participating in solving the problem of environmental pollution in rural areas. From an economic perspective, this policy has indirectly supported resources for people to develop the economy while ensuring social security and contributing to building new rural areas. In the coming time, the Branch will continue to coordinate with localities to strengthen propaganda and popularize policies, creating favorable conditions for people in rural areas to access loans from the program.

Phuong Thao

Source: https://baophutho.vn/hieu-qua-chuong-trinh-cho-loan-nuoc-sach-va-ve-sinh-moi-truong-nong-thon-218244.htm