Credit helps people who have made mistakes stabilize their lives

After more than a year of implementing Decision No. 22/2023/QD-TTg of the Prime Minister, the credit policy for people who have completed their prison sentences in Thai Nguyen has brought positive results. However, for the program to truly promote sustainable effectiveness, a number of barriers need to be removed...

The Provincial Social Policy Bank and the Provincial Police signed a coordination program to implement Decision No. 22/2023/QD-TTg.

New opportunity for the wrongdoer

Immediately after Decision No. 22/2023/QD-TTg (Decision 22) took effect, the Provincial Bank for Social Policies (BSP) coordinated with all levels and sectors to organize conferences to deploy the contents of the regulations; advise on the issuance of the Provincial People's Committee's plan; develop a credit plan for the period 2023-2026. Along with that, the Provincial Bank for Social Policies directed the district-level transaction offices to coordinate with the police force, local authorities and socio-political organizations entrusted to review subjects in need of loans and eligible for disbursement...

After more than a year of implementing Decision 22 (from October 2023 to the end of January 2025), the whole province has 318 borrowers of this Program with a total outstanding debt of nearly 30 billion VND. Thanks to the credit capital, many individuals have focused on livestock farming, crop cultivation and service business, opened their own small production models, created stable income and gradually escaped difficulties.

Mr. Dao Van M., born in 1951 in La Le hamlet, Tan Thanh commune (Phu Binh) shared: After serving my prison sentence in my locality, I borrowed 100 million VND from March 2024 to invest in buying 2 buffaloes for meat, 3 sows and raising about 100 chickens. Thanks to this capital, I have the opportunity to rebuild my life, gradually stabilizing my family's economy.

Mr. Dao Van Mien, in La Le hamlet, Tan Thanh commune (Phu Binh) borrowed 100 million VND under Decision 22 to invest in livestock farming and rebuild his life.

Mr. Dao Van M., in La Le hamlet, Tan Thanh commune (Phu Binh) borrowed 100 million VND under Decision 22 to invest in livestock farming and rebuild his life.

As for Mr. La Van H. in Tien Phong hamlet, Duc Luong commune (Dai Tu), after serving his prison sentence, Mr. H. was advised to access preferential loans from the Vietnam Bank for Social Policies and was able to borrow 100 million VND. With the above amount, Mr. H. bought tools and equipment to serve the construction work and paid for workers. Currently, he has received a number of contracts to build civil housing projects and created stable jobs for about 20 workers, with an income of 6 to 10 million VND/person/month. He has bought a car, and his family's economy is increasingly prosperous.

Ms. Nguyen Thi Huong, Deputy Director of the Social Policy Bank of Phu Binh District, said: After more than 1 year of implementing Decision No. 22 of the Prime Minister, the total loan turnover in Phu Binh District reached nearly 12 billion VND with 128 borrowers, accounting for nearly 40% of the total outstanding debt of the whole province. With this result, the policy credit capital has met practical needs, provided capital for production and business, created jobs and livelihoods for people who have violated the law, helping them rebuild their lives.

Positive changes

The credit policy not only helps people who have completed their prison sentences find jobs but also has a clear impact on local economic development. According to statistics, 75% of borrowers have had a stable income after only 6-12 months, with an average of 6-10 million VND/month. Thanks to the support capital, many small business models have developed well, with revenue increasing by 15-30%, helping borrowers gradually become financially independent.

For example, Mr. Nguyen Van Hop, in Tien Truong hamlet, Tien Hoi commune (Dai Tu), was wondering how to start over after serving his prison sentence. Thanks to the propaganda about Decision No. 22, he boldly registered to borrow 100 million VND from the Social Policy Bank of Dai Tu district. With the capital, Mr. Hop discussed with his family, taking advantage of the available water surface and hills to raise fish, provide fishing services and grow fruit trees. Each year, his family earns from 120-150 million VND, having a stable source of income.

In addition to the economic impact, this policy also contributes to significantly reducing the recidivism rate. The recidivism rate among the group that received loans was only less than 5%, much lower than the average of 10-15% among the group that did not have access to capital. This shows that when having a stable job and income, people who have violated the law will have better motivation to live, reducing the risk of recidivism.

Phu Binh District Social Policy Bank disburses loans to subjects according to Decision 22 of the Prime Minister.

Ms. Hoang Thi Nhung, Head of the Savings and Loan Group in La Le Hamlet, Tan Thanh Commune (Phu Binh) commented: In reality, those who received loans all appreciated this opportunity. They used the capital for legitimate purposes, focusing on developing production. Many cases, from being in difficult situations and without jobs, now have a stable source of income, gradually escaping poverty. However, there are still some people who have difficulty in financial management and need further support in business planning skills.

Furthermore, the community's attitude towards this group of people is also gradually changing. Previously, many people still had prejudices against those who had served prison sentences, but now, when witnessing them doing honest business, many people are more open and willing to support them. - Ms. Hoang Thi Nhung

It can be affirmed that the credit program for people who have completed their prison terms implemented by the People's Credit Fund is like a "warm embrace" to welcome those who have made mistakes to reintegrate into the community.

Barriers remain

Despite the encouraging results, the implementation of credit policies still faces many difficulties. One of the biggest obstacles is the ability to access capital. Many people who have completed their sentences do not have collateral or guarantors, making it difficult to borrow capital.

When he first returned to his family after 4 years of serving his prison sentence, Mr. D.VT, from Phuc Triu Commune (Thai Nguyen City) encountered many difficulties due to lack of capital to do business. Mr. T. shared: When I finished serving my prison sentence, I found all work very difficult for me. Luckily, I was supported with a loan under Decision No. 22, which gave me the conditions to start over.

In addition, fear is also a significant barrier. Many people after serving their prison terms feel self-conscious and do not dare to approach financial or local agencies to seek support opportunities. This causes them to miss out on many preferential programs that could help them.

Mr. Pham Trong Huy, Head of the Savings and Loan Group in Dong Noi Hamlet, Phuc Triu Commune (Thai Nguyen City) said: "Many people when returning to their hometowns are very reluctant to contact mass organizations, especially in borrowing money. We have to proactively go to their places, propagate, encourage and guide them on how to borrow money, helping them boldly participate in the program."

Solutions to put policy into practice

According to Mr. Le Van Hong, Deputy Director of the Provincial Social Policy Bank: For the policy to be truly effective, authorities at all levels and functional agencies need to further promote propaganda work, helping people who have completed their prison sentences understand their rights and how to access capital. At the same time, it is necessary to organize training courses on financial management and production and business skills to help them use capital effectively.

The participation of provincial mass organizations such as the Farmers' Association, Women's Association... in support and supervision is also an important solution to improve the effectiveness of implementing Decision 22 of the Prime Minister.

Mobilizing mass organizations such as the Farmers' Association, Women's Association, etc. to participate in support and supervision is also an important solution to improve the effectiveness of the program. These organizations have a direct role in reviewing, advising, guiding borrowers in making business plans, and at the same time monitoring the capital use process to ensure efficiency.

In addition, it is necessary to build a flexible credit guarantee mechanism, allowing organizations or local authorities to guarantee for borrowers without collateral. At the same time, strengthen links with businesses and production and business establishments to expand employment for this group of people, helping them have the opportunity to access stable and sustainable jobs...