Da Nang supports workers to borrow capital and limit black credit

Workers need suitable loans

Ms. Phuong, a worker temporarily residing in a worker housing area in Cam Le ward, Da Nang city, said that she had been invited many times by hot loan sharks.

Although introduced to being able to borrow money quickly, she still decided to refuse because of concerns about the consequences of this form of borrowing.

Many times I have heard about the harms of hot loans and black credit loans, so I am somewhat hesitant. Moreover, this year I am old, realizing that I am not able to pay if I borrow capital, so I have refused all forms of lending" - Ms. Phuong shared.

At the worker housing area where Ms. Phuong lives, propaganda activities on policies, laws, and warnings about fraud and usury are regularly implemented by the Self-managed Workers' Group.

In recent years, the Da Nang City Labor Federation (LDF) has implemented many programs to support union members and workers to access preferential loans.

In which, the Fund to support capital for poor workers, civil servants, and laborers of the City Labor Federation is a practical support channel.

Established in 2016, the Fund has created conditions for many union members and workers in difficult circumstances to borrow capital to serve their living needs and improve their family lives.

According to data released in 2024, since 2017, the Fund has provided loans to nearly 5,000 turns of union members, workers, civil servants, and laborers belonging to nearly 800 grassroots trade unions. The average annual direct disbursement capital reaches nearly 14 billion VND.

Promoting the role of the Trade Union in supporting loans

In addition to the operation of the Capital Assistance Fund, the city also implements a policy of entrusting budget capital through the Social Policy Bank to support eligible groups.

According to the program built for the period 2024 - 2028, Da Nang is expected to allocate 100 billion VND of entrusted capital. Of which, 50 billion VND is for some groups of officials, civil servants and employees of agencies and units; 50 billion VND is for workers, laborers, and union members who meet the conditions.

To ensure that capital reaches the right targets, the City Labor Federation coordinates with the Vietnam Bank for Social Policies to organize training and professional guidance on lending, helping grassroots trade union officials understand the process and support union members in need.

Mr. Le Van Dai - Standing Vice Chairman of Da Nang City Labor Federation - said that the situation of usury and black credit used to be complicated among workers in the area.

Faced with that reality, the City Labor Federation has implemented a loan program from the Fund to support poor workers, and at the same time coordinated with relevant units to expand appropriate credit channels.

According to Mr. Le Van Dai, the budget capital supporting workers to borrow through the Social Policy Bank is of great significance to workers facing economic difficulties, contributing to helping them stabilize their lives and limit the risk of turning to black credit.

From the reality in Da Nang, it can be seen that preferential lending programs not only solve immediate financial needs but also contribute to the implementation of policies to care for the lives of union members and workers.

For these programs to be effective, it is very necessary to continue to expand capital sources, simplify procedures in accordance with regulations and create conditions for workers to access information about loan packages.

When workers can access safe, transparent and income-appropriate capital sources, difficulties in life will have more solutions, and at the same time contribute to narrowing the operating opportunities of usuriers.

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