Boosting credit in the poor area - the effort in order to reduce the loan interest


Boosting the credit policy in order to develop economic – social receives the special priority from State Bank. Besides the policy for the poor household, the Bank is trying efforts to decrease the loan interest and to satisfy the expectation of the enterprises.

Effective implementation of credit policies
The State bank Governor and Chairman of The Social policy bank, Mr. Le Minh Hung announces that The Social policy bank is carrying out 22 credit programs for poor, nearly poor and priority people. To date 31 August, total outstanding credit programs policy in The Social policy bank have increased 5.7% in comparison with end of 2015, with 8.4 million of clients have debt. The overdue debts have a small ratio, only 0.44% of the total debt.

According to the regions, the credit for poor people to date 31 August in the Nord West reaches 26.506 billion, decreases 8.58% in comparison with end of 2015, with more than 1.2 millions of clients have debt, and the overdue debts attain 0.44% of the total debt.

In this region, there are 3 enterprises was chosen to participate the experimental lending modal program for agricultural development with the total loan commitment from commercial banks up to 318.5 billion. 2 projects receive loans are The project of Investment in processing and consumption of tea with the disbursal sales of 26.95 billion in Lao Cai and The modal Project of joint production with farmers to expand the area to maintain sugarcane with the disbursal sales of 60 billion in Tuyen Quang. They are the projects of typical enterprises in terms of high-tech applications in agriculture in all over the country which was chosen to be the modal with the purpose of implementing the policy of restructuring the agricultural sector of the Government.

In Tay Nguyen, the total debt to date 31 August reaches 13.009 billion, decreases 7% in comparison with end of 2015 with 666,406 household having debt according to the programs, overdue debt ratio is 0.38%. Here, Projects of production lemon water and planted orchids has loans with the loan sales of 109 billion, debt of 47 billion, almost debt are long term and medium term debt with the loan interest of 5.5% per annual.

In the South West, to date 31 August, total debt for poor people in the delta of Cuu Long reaches 26,550 billion, decreases 5.1% in comparison with 31 December 2015, with more than 2 millions of clients have debt, and the overdue debts attain 0.44% of the total debt. In this region, there are 10 production projects of high-tech which was allowed to implement the modal program. After 2 years of application, with the help of the loans from the banks, the enterprises are able to perfect the modal in agriculture production of the chain link, high technology that bring profit to households and enterprises, for example the Modal of investment in linking production chains and consumption of vegetables Antesco, the Modal of catfish Tafishco, the Modal of big field…

“The State Bank continues to seriously implement the guidelines of the Party and the Government in order to effectively carry out the credit program for poor people. To ensure social policy is an effective tool for credit program for poor and other priority people” The Governor Le Minh Hung confirmed