Poor people to benefit from low loan rates

Hanoi (VNA) - Poor people throughout the country will enjoy a lower or even a zero interest rate for loans from the Bank for Social Policies.

This follows Prime Ministerial Decision No 579/QD-TTg date May 4, which took
effect immediately and will last until the end of 2011.

According to the decision, the poor and other priority people will be
offered a reduced rate of 4 percent a year for loans to join programmes for
clean water supplies and environment protection.

Loans for existing programmes that offer rates lower than or equal to 4
percent, such as the programme to support people with disabilities, will
enjoy a zero rate.

Local authorities will instruct branches of the Bank for Social Policies to
check and supervise support to ensure that loans are used in accordance with
credit contracts.

Last year, 13 percent of the nation's people - or 12.4 million
households - were classified as poor, according to the Ministry of Labour,
Invalids and Social Affairs.

Until now, poor people have had to borrow money from the banks for social
affairs at rates similar to those charged on ordinary customers.

The loans are usually sought to run businesses, such as household
handicrafts and investment in husbandry and cultivation.

Last month, the Government introduced a similar 4 percent loans to support
individuals and organisations to develop agricultural business and
production, and another to buy agricultural machines and construction
materials in rural areas.-Enditem