Interest rate support under Decree 36 helps many households develop production and business effectively.

Thanks to access to loan capital under Decree 36/2022/ND-CP dated May 30, 2022 of the Government on interest rate support (HTLS) of 2%/year for loans at the Vietnam Bank for Social Policies (VBSP) under the economic recovery and development program, many households in Thuong Xuan district have the conditions to invest in expanding production and business development, increasing income.

Thuong Xuan: Interest rate support under Decree 36 helps many households develop production and business effectively Thanks to the interest rate support of the 100 million VND loan package from the Vietnam Bank for Social Policies, Mr. Le Van May's family, Thong Nhat 3 village, Xuan Duong commune, invested in growing cantaloupe, bringing about quite good economic efficiency.

Previously, on an area of 3,000m2 of garden land, Mr. Le Van May, Thong Nhat 3 village, Xuan Duong commune specialized in growing sugarcane, but the productivity was low, the income was not high, the profit was only 10 million VND/year. Realizing that the model of growing yellow melons in greenhouses was highly effective, in early 2022, his family decided to borrow 100 million VND with a support rate of 2% interest rate/year from the Transaction Office of the Social Policy Bank of Thuong Xuan district to invest in growing melons. Through the first 2 melon crops, his family harvested 12 tons of yellow melons, after deducting expenses, earning an income of over 100 million VND/crop, 3 crops per year.

Thanks to access to HTLS capital with the amount of 100 million VND from the Transaction Office of the Social Policy Bank of Thuong Xuan district, the 3.7 ha area of green hemp of Mr. Le Van Son's family, Tan Lap village, Xuan Duong commune has the conditions to be well cared for, promising a harvest with high productivity and efficiency. Mr. Son said: “After being informed by the head of the savings and loan group (TK&VV) about the interest rate reduction support program at the District Social Policy Bank Transaction Office, in February 2023, my family applied for a loan of 100 million VND under the production development loan program. With a support rate of 2% interest rate/year, my family has reduced the burden of paying interest each month, and can confidently develop the economy. Although the green hemp area is still nearly 1 week away from harvest, according to the technical staff's forecast, the yield can reach 8 tons of hemp. With a purchase price of 45 - 47 million VND/ton, after 4 months of planting and caring, the green hemp area has given my family a profit of tens of millions of VND".

It is known that Decree 36/2022/ND-CP dated May 30, 2022 of the Government on interest rate support of 2%/year, applied to customers borrowing capital under policy credit programs lent by the Vietnam Bank for Social Policies, the interest rate support implementation period is calculated from January 1, 2022 to December 31, 2023 or when the Vietnam Bank for Social Policies announces the end of interest rate support implementation according to the provisions of the Decree. Mr. Nguyen Van Chung, Deputy Director of the Transaction Office of the Social Policy Bank of Thuong Xuan District, said: “To effectively implement the program, in addition to closely coordinating with local authorities to closely direct the heads of savings and credit groups to propagate the Government's interest rate support policy to the people, the unit has also publicly posted the policy at commune transaction points, and at the same time coordinated with the commune authorities to proactively coordinate and review, creating the most favorable conditions for beneficiaries to access the right support policy. In 2022 and the first 4 months of 2023, the transaction office has disbursed loans to 4,382 borrowers, with a loan turnover of 116 billion 655 million VND, a total outstanding loan of 553 billion 382 million VND. Customers receiving interest rate support under Decree 36 in the district all use the loan capital for the right purpose, improve their lives and have stable incomes”.

Article and photos: Minh Ly

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