For many years, the Savings and Loan Groups (TK and VV) have been considered as the “extended arms” of the Vietnam Bank for Social Policies (VBSP). Through their activities, the preferential capital entrusted by the Government through the VBSP has reached the poor and policy beneficiaries. Thereby, helping them develop their economy, stabilize their lives, and contribute to the implementation of the poverty reduction target in the locality.
Many households in Hoat Giang commune (Ha Trung) received policy loans for effective economic development.
Entrusted by the TK and VV group in Viet Yen village, Vinh Hung commune (Vinh Loc), Mr. Trinh Van Quyen was able to borrow 100 million VND from the job creation loan program of the Transaction Office of the Bank for Social Policies in Vinh Loc district to invest in a comprehensive farm. Mr. Quyen shared: “Joining the TK and VV group, I was guided on the job creation loan policy credit program, had easy access to capital, and quick disbursement procedures. With an area of over 3 hectares, in addition to investing in growing fruit trees, I also grow medicinal plants such as ginseng, creating stable jobs for 3 workers”.
Mr. Hoang Dat Cong, head of the Savings and Credit Union group in Viet Yen village, said: “Since its establishment, the Savings and Credit Union group has become a “support” for its members. In addition to the tasks assigned by the VBSP, such as reviewing applications, disbursing capital, and collecting principal and interest monthly, the group is also a place for members to share difficulties in the borrowing process. Currently, the Savings and Credit Union group in Viet Yen village has a total outstanding debt of more than 4 billion VND, with 56 members borrowing capital. Borrowing households mainly invest in developing farms, raising pigs, buffaloes, cows, and doing business services... During the process of using capital, we regularly check and promptly urge debts that are about to mature and overdue. Any problems and difficulties are promptly reported to the directly managing association and the credit officer in charge of the commune for resolution. Thanks to that, the group members always use capital for the right purpose, effectively, and for many years the group has had no overdue debt or interest. The lives of the group members have improved significantly. Up to now, 100% of the group members have participated in saving money.
Currently, savings and credit groups are widely distributed in all villages, hamlets, and residential groups in the whole province, directly implementing a number of contents authorized by the VBSP such as: organizing meetings to consider loans; supervising the use of loans; educating and propagating debt repayment awareness for borrowers; propagating and mobilizing group members to participate in saving deposits; performing well the work of collecting interest and collecting savings periodically every month; promptly monitoring and urging due debts; coordinating well the work of handling outstanding debts and risky debts... The savings and credit groups are all managed by organizations and unions such as the Farmers' Association, Women's Union, Youth Union, and Veterans' Association, and are entrusted with the VBSP to disburse loans to poor households and other policy beneficiaries. Thereby, the capital source is guaranteed to reach the right beneficiaries, the number of poor households, near-poor households, newly escaped-poverty households and other policy beneficiaries accessing loans increases.
Identifying the important role of savings and credit groups, Thanh Hoa Social Policy Bank and socio-political organizations that receive the trust regularly coordinate to review, consolidate and improve the quality of the groups' operations. Every year, develop plans and organize regular inspections of savings and credit groups on the storage of records, books and purposes of loan use at the grassroots level; check the purpose of loan use after lending. Monthly, at fixed transaction sessions in communes and towns, leaders of savings and credit groups directly participate in meetings with the bank, promptly grasp new programs and policies and disseminate them to the people; timely information on difficulties and problems of the groups and borrowers with solutions... As of early August 2024, the whole province has 6,431 savings and credit groups in operation, the total outstanding loan balance entrusted through savings and credit groups reached more than 14,269 billion VND, accounting for 99% of the total outstanding loan balance; the average number of group members is 39 people/group, the average outstanding loan balance reached nearly 2.3 billion VND/group. Thanks to the active activities of savings and credit groups, preferential loans have been effective, helping many poor households and policy beneficiaries to stabilize their lives.
Article and photos: Khanh Phuong
Source: https://baothanhhoa.vn/gop-phan-nang-cao-hieu-qua-nguon-von-tin-dung-chinh-sach-221571.htm
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