People get loans at a branch of the Việt Nam Bank for Social Policies in Tuy Phước District, central Bình Định Province. — VNA/VNS Photo Viết Ý
Viet Nam News
HÀ NỘI — More than two million households in disadvantaged areas across Việt Nam have received loans from the Việt Nam Bank for Social Policies (VBSP) over the last decade, according to a new report.
According to the bank’s report, from 2007 to February 28, 2017, it has offered total loans of over VNĐ44.2 trillion (US$1.94 billion ) to the households.
Currently, 640,000 business households in disadvantaged areas are operating on loans worth VNĐ16.4 trillion ($720 million).
It is expected that by 2020, business households in disadvantaged areas will need at least VNĐ6.6 trillion to develop their productions and businesses.
The programme was launched in 2007, aiming to assist business households, including those running farms. Each household can receive a loan of VNĐ50 million at maximum with monthly interest rate of 0.75 per cent. Some certain cases could borrow more than VNĐ50 million but less than VNĐ100 million.
The recipients of the programme are not poor households who ought to have been clients of commercial banks. However, they faced difficulties to access bank loans, because they live in disadvantaged areas where commercial banks hardly open branches. If available, the branches are usually located in downtown areas of provinces, which are about 30-50 kilometres away from the disadvantaged areas.
The VBSP, with a network of almost 11,000 offices in communes across the country, was assigned to offer loans to these people in disadvantaged areas. — VNS