Government gives loans to expand poverty reduction

The Prime Minister has issued a decision on credit capital through the Vietnam Bank for Social Policies (VBSP) to assist families who have recently escaped poverty and help them expand production and business, thus gradually stabilising their lives and boosting sustainable poverty reduction.

Credit capital has helped poor families in Lao Cai province expand production. (Photo: vbsp.org.vn)

The families qualifying for benefits from the scheme will have a per capita income greater than that set for the poverty line and have been out of the poor/nearly poor list for a maximum of three years. The decision clearly noted that the value of the loans depend on the agreement between the VBSP and the recipient families but would not exceed the amount set for loans to poor families for production and business based on the current regulations.

The loans will carry a maximum level of interest of 125% compared to the interest rate of loans for poor families over a five year period.

Statistics from the VBSP show that among 700,000 families who have recently escaped poverty, some 200,000 have not been given loans for production./.

( Compiled by VNF )