Under the agreement with the provincial Farmers' Association, the provincial Women's Union, during the past year, Agribank Khanh Hoa has offered lending to members of these organizations.
Under the agreement with the provincial Farmers’ Association, the provincial Women’s Union, during the past year, Agribank Khanh Hoa has offered lending to members of these organizations. Then, many members have capital to expand production as well as business, and form many effective production models.
Vo Van Mai (in Ninh Da Ward, Ninh Hoa Town) borrowed VND100 million to grow mushrooms and some kinds of farm produces like chilli, bitter melon…which has brought his family an stable income. Another farmer named Tran Minh Tu (in Phong Phu 2, Ninh Giang Ward, Ninh Hoa Town) borrowed money from Agribank to grow daisy. He said the loan has been used effectively. Invested about VND200,000, a daisy pot was sold at VND250,000 – VND300,000. At present, farmers in Phong Phu 2 Hamlet are focusing on taking care of daisy plants for the coming Lunar New Year Festival. Through the provincial Farmers’ Association, each flower growing household has been offered a loan of VND50 million with 7%/year in interest rate to buy seeds, materials and hire labor. As a result, production capacity of each household has risen, contributing into the development of daisy planting in Ninh Giang.
“To ensure the credit quality, Agribank frequently assesses the lending situation from the provincial Farmers’ Association and the provincial Women’s Union o limit risks. The close coordination has helped bad debts kept at low rate”, Le Hoang Bao, deputy manager of Planning and Sales of Agribank Ninh Hoa.
Owning to the loan of VND100 million from Agribank, Pham Thi Hoa’s family in Van Hung Commune, Van Ninh District has expanded their area of growing garlic with peanut and squash, sandalwood and raising cows. The capital has also enabled her family to invest an automatic watering system. Her family’s earning from garlic only in 2015 after expenses was VND200 million.
 |
| Pham Thi Hoa's farm in Van Hung Commune, Van Ninh District |
According to Tran Cong Sang, deputy director of Agribank Van Ninh, this branch has developed about 3,000 borrowers through groups of the district Farmers’ Association and the district Women’s Union, making up nearly 50% of the branch’s borrowers.
Under Decree 41 (Decree 55 now) by the Government on credit policies for the development of agriculture and rural areas, Agribank Khanh Hoa’s directorate guided branches in the whole province to increase maximum unsecured loan to VND50 million for individuals and households, VND200 million for businesses, and VND500 million for cooperatives and farm owners. Preferential interest rate for borrowers under Decree 41 is always 1.5% - 2% lower than that for others.
According to director of Agribank Khanh Hoa Nguyen Xuan Huy, the bank has given loans to people with low income and no mortgage to grow their production. Support from the local authorities, unions and the coordination between the bank and associations have brought the State’s credit policy on agricultural development to people.
In the period of 2016 – 2020, Agribank Khanh Hoa’s determined to continue a pioneer in implementing the credit policy on agriculture and rural areas, partly upholding local economic potentials, developing new rural areas and raising living of rural people in the province. Credit for agriculture and rural areas of Agribank is expected to make up 70% of the credit balance.
N.D
Translated by T.T
