200m kip bank loan to boost farming in poor Sangthong district
200m kip bank loan to boost farming in poor Sangthong district
Phongsavanh Bank has injected a loan of more than 200 million kip into the farming community of Sangthong district, Vientiane to develop family businesses.
The bulk of the loan was given to 15 families for livestock breeding and to two families for fish breeding in Nhay Nachaleun village, Mr Savaeng Sanay, a District Administration Office official, told Vientiane Times on Tuesday.
Farmers who borrowed less than 20 million kip will pay 1 percent in interest per month, while those who borrowed over 20 million kip will pay 4 percent in interest per month. All the loans must be paid back within three years, Mr Savaeng said.
The loans will allow business farmers in the village to increase production and develop the area in the future.
An additional 24 people have now approached district authorities seeking further loans from the bank of between 20 and 40 million kip.
Mr Savaeng said the funds would be used to invest in livestock breeding, trading and buying equipment.
Bank staff are now meeting with village authorities to gather information on potential future borrowers.
Farmers have struggled to borrow from banks in the past as they lack financial knowledge and have limited time to visit bank branches.
To overcome this, Phongsavanh Bank has arranged for its staff and district authorities to visit the farmers at the village to give them advice on borrowing loans and assess the financial condition of would-be borrowers.
The government has ensured the loan will be beneficial for both the farmers and the bank. It is hoped the family businesses in this village will become models for other villages to learn from.
Sangthong district is categorised as one of the poorest districts in Laos, with most of its people making a living selling agricultural produce and breeding livestock for sale and consumption.
vientiane times
