Social policy credit supports youth startups

Updated: 17:17, 15/06/2024

BAC GIANG- In recent years, hundreds of young people in northern province of Bac Giang have benefited from policy credit resources for startups. Thereby, many youth business models have been established and come into effective operation.

Effective use of fund

Due to the high percentage of young people getting working age annually, the support for the youth’s startups and job creation has been paid arduous attention by all levels and sectors. The province has allocated trust fund through the provincial Bank for Social Policies and its branches in the districts to lend young people for startups.

The fine art stone cutting model of Ngo Duc Quy in Ma Bap village, Huong Lac commune, Lang Giang district.

The fine art stone cutting model of Ngo Duc Quy (born in 1997), a youth unionist of Ma Bap village, Huong Lac commune, Lang Giang district is a good example. Quy started doing stone cutting business 6 years ago at a small scale due to limited capital. In 2023, he was lent 100 million VND (3,927 USD) from the provincial Bank for Social Policies in 3 years at a preferential interest rate thanks to the guidance of the Youth Union to expand his production.

He used the loan and his savings to buy machines and open one more stone cutting factory. Quy’s business has grown smoothly thanks to his effective leadership and qualified products. The stone cutting factory has been in stable operation earning an annual profit from 250 to 300 million VND (9,820 to 11,783 USD). Quy pays the interest and part of the loan for the bank monthly from the earnings.

Similarly, 24 young people in Yen Dung district were lent from 80 to 100 million VND (3,142 USD to 3,928 USD) for each, 2.1 billion VND (82,485 USD) totally. Thanks to this credit resource, a number of youth startups affirmed efficiency.

A bridge for young people to access loans

The startup loans partly meet the demand of young people to provide them with financial resources for production, doing business and improving their living standard.

The cow raising model of Duong Thanh Tung in Tien Phong village, Noi Hoang commune, Yen Dung district.

To date, 261 youth startup models have been formed in the entire province in the fields of mechanics, garment, livestock, aquaculture and construction materials among others thanks to the trust fund resources of the province, districts, city and township with the total loan balance of some 24.7 billion VND (970,187 USD).

In order to promote efficiency of the loans, the provincial Bank for Social Policies and its transaction offices in the districts, city and township have collaborated with grassroots-level unions including youth union to communicate on preferential credit policies for young people, then revise, appraise and select right beneficiaries before disbursement.

The loans are for those from 18 to 35 who want to borrow money to create jobs or employ more workers. The bank prioritizes to grant loans for young people with startup initiatives; thereby strengthening support for the youth to access to the incentive loans for startups, contributing to socio-economic development. The loan period depends on specific production project, maximum 10 years with an incentive interest rate of 0.66 percent per month.

After receiving disbursement, the trusted grassroots unions have organized training programmes on agriculture extension and technology transfer for young people to develop their models and overcome difficulties to enrich themselves.

According to Ha Quoc Quan, Director of the provincial Bank for Social Policies, the bank assigned their officials to collaborate with all-level unions to guide beneficiaries in the list of selected young borrowers to soon finalize documentation for timely loan disbursement. With proper supervision, almost all of the loans for youth startups have gained efficiency when the monthly interest and principal are paid as regulations.

The policy credit has proved increasingly effective that helps many young people in economic development. The provincial Bank for Social Policies will continue reviewing to disburse loans to right beneficiaries in coming time.

Minh Linh