Since 2005, Nhon Trach district Red Cross Chapter has opened credit facility that lends capital to its staff and members who are living in poverty. Amounts of humanitarian fund of the district Red Cross Chapter has financed the lending program. The district Red Cross Chapter has provided minimum loans of VND 500,000 and maximum loans of VND 2 million to a borrower who got favorable interest rate on a loan of 0.5% per annum.
Since 2005, Nhon Trach district Red Cross Chapter has opened credit facility that lends capital to its staff and members who are living in poverty. Amounts of humanitarian fund of the district Red Cross Chapter has financed the lending program. The district Red Cross Chapter has provided minimum loans of VND 500,000 and maximum loans of VND 2 million to a borrower who got favorable interest rate on a loan of 0.5% per annum. Over the past two years (2005-2006), the Chapter has lent capital amounting to VND 307 million to 155 poor households for production and business development in Nhon Trach district.
Suggestion for the Chapter’s lending program was made by former secretary of the district Party Committee Lam Thi Nguyet. By the early 2005, the Chapter’s humanitarian fund had a little about 900,000 VND whereas the fund has been asked to mobilise as much as several tens of million dong. Thanks to active support from local donors and efforts of the former secretary of the district Party Committee in mobilising funds from donors, the district Red Cross Chapter has so far raised its humanitarian fund to around 200 million VND. In which, about 80 per cent of the capital of the Fund was contributed by donors who were mobilized by the former secretary of the district Party Committee. Being retired now, Lam Thi Nguyet has always contributed active efforts to mobilize financial resources for the Chapter’s humanitarian fund.
Although the district Red Cross Chapter has lent a small amount of money to its staff and members, it has helped them expand income opportunities and improve their living conditions. During the past two years, the chapter has provided loans for its members in 7 out of 12 villages because the size of the fund is limited. The Chapter plans to lend capital to its members in the rest villages in 2007.
Reported by Ngoc Thu
