Preferential Interest Rates Favor the Poor

The PM has signed a decision to reduce lending interest rates for policy credit programs at the Vietnam Bank for Social Policies (VBSP). Accordingly, lending interest rates for poor households, guest workers, students and pupils are 7.2% per year (or 0.6% per month). Earlier, the applicable rate was 7.8% per year (or 0.65% per month). The VBSP reported that the policy on preferential interest rate for poor households has been implemented widely. In the 2005-2012 period, nearly 10 million of poor households accessed the credit, of which 2.4 million escaped from poverty. The interest rate adjustment is expected to support the poor to easily access preferential credit and reduce poverty in a fast and sustainable manner. (chinhphu.vn Jun 11)