The Hanoi Bank for Social Policies has disbursed VND110.3 billion (US$4.56 million) in preferential loans for nearly 2,000 customers as of September 30, in compliance with the Government’s resolution No.11 on the socio-economic recovery program.

Customers getting loans from the Vietnam Bank for Social Policies. File photo

Vice Director of the Hanoi Bank for Social Policies Pham Van Quyet released the data during a meeting on October 13.

According to Quyet, the bank has been actively working to identify customers qualified for the program to ensure the effective implementation of resolution No.11.

Upon breaking down, the Hanoi Social Policy Bank lent up to VND100 million ($4410) to every 1724 borrowers for job creation; VND4.4 billion ($182,000) for six in social housing purchases.

A significant part of the fund has also been allocated for poor students to buy computers and devices for online studying, including VND1.7 billion ($70,393) for 107 customers and 177 students to help them pay tuition fees.

In addition, the 133 private kindergartens and primary schools have also borrowed loans with low-interest rates worth VND10.6 billion ($439,000) to cope with the Covid-19 pandemic impacts.

Quyet added that during the first months of 2022, the bank has continued to provide loans worth VND162 billion ($6.7 million) to 105 enterprises to pay the salaries of 38,905 workers, which is part of the Government's Resolution No. 68 on supporting Covid-19 affected employees and employers.

Currently, 262 companies and 76,925 workers have benefited from the program obtaining total support of VND324 billion ($13.4 million) and around VND228 billion ($9.4 million) in outstanding loans.

The bank's representative said credit policy has effectively contributed to Hanoi's socio-economic development and remains a helpful instrument toward poverty reduction, job creation, and promoting social welfare in the city.

A report from the Hanoi Bank for Social Policies noted its total operating funds stood at VND12.8 trillion ($530 million), up VND968 billion ($40 million) year on year. Of the total, Hanoi has allocated VND5.6 trillion via trust fund to the bank, up VND926 billion ($38.3 million).

Outstanding loans during the nine months as of September 30 stood at VND12.7 trillion ($526 million) for 253,000 customers, representing an increase of 8.1% year on year.

Director of the Hanoi Bank for Social Policies Le Thi Duc Hanh expected the bank to continue focusing on providing loans for eligible customers, especially socially vulnerable groups that are severely affected by the Covid-19 pandemic under resolution No.11.

"The bank will also work on raising public awareness to ensure the use of these preferential funds for the right purpose and their responsibilities to pay off the debt on time," Hanh said.