Preferential interest rate to raise production among households near poverty

To continue to create favourable conditions for families living near the poverty line to sustainably escape poverty and boost economic production, on October 9, the Prime Minister issued a decision reducing the interest rate for loans for these families from 10.14% to 9.36% per year.

The interest rate reduction policy encourages people to borrow money to invest in production (Photo: QTV)

Pham Thi Hieu’s family in Quang Yen town recently escaped from poverty; at present, they still lead a difficult life. The Prime Minister’s decision on giving preferential loans for nearly poor families dated February 2013 opened up new opportunities for families like Ms Hieu’s. However, her family did not dare to borrow money as they were afraid of not being able to pay the interest in time. Since the new decision on reducing the interest rate was issued, they decided to borrow VND30 million to buy cows for economic development.

Vu Thi Huyen in Quang Yen town was happy, sharing that the decision held great significance for families like hers. With the interest rate reduction, she said she would be able to borrow funds to invest in production and escape poverty.

Statistics show that Quang Ninh province has 8,500 families living near the poverty line, of which over 4,000 families have demand for loans worth some VND70 billion. However, as of late September, loans granted only satisfied 30% of the demand. The interest rate reduction is expected to increase the disbursement of the capital, assisting people in sustainably escaping poverty and contributing to the common development of the province.

At present, the loans are being carried out across the province by the Bank for Social Policies, Quang Ninh provincial branch./.