Flexible solutions to bring preferential credit capital to people

Over the past years, the provincial branch of the Vietnam Bank for Social Policies (VBSP) has continuously implemented many solutions to simplify loan procedures; thereby, creating favorable conditions for poor and near-poor households and other policy beneficiaries to access preferential credit loans from the Government.

One of the reform steps that the provincial branch of the Social Policy Bank and the transaction office systems of districts and cities are implementing is to innovate the loan process. If in the past, people's loan applications included many different types of documents, now all procedures are integrated into a book with a separate customer code (KH) for use throughout the loan process from the Social Policy Bank. Ms. Dao Thi Xuan Anh, Tuan Tu village, An Hai commune (Ninh Phuoc), shared: In 2022, the Women's Union of the commune promoted and introduced loans from the Social Policy Bank, I represented my family to write an application according to a pre-printed form and submitted it to the head of the savings and loan group in the village, then the group management board made a list, sent it to the local authorities for confirmation, and requested the Social Policy Bank to consider and approve. After only a few days, the family received 80 million VND from the bank from the program for newly escaped poverty households. Thanks to that, I have the conditions to renovate the land to grow 2 sao of green asparagus and raise 5 more cows, earning about 10 million VND/month.

Staff of the provincial branch of the Social Policy Bank guide people through loan procedures.

Along with innovating the loan approval and appraisal process, the provincial branch of the Bank for Social Policies also pays attention to and focuses on building and improving the quality of operations of commune transaction points (DPOs). On a fixed day every month, all lending, debt collection, interest collection, and savings mobilization activities are carried out right at the commune DPOs. Borrowers do not need to go directly to the bank, saving significant costs and travel time during the transaction process. Ms. Dao Thi Bich Lien, Head of the Savings and Loan Group in Hieu Le village, Phuoc Hau commune (Ninh Phuoc), said: At the commune DPOs, all new preferential credit policies and programs are publicly posted so that people can easily grasp them; at the same time, the group leaders manage the groups and meet with credit officers to discuss the loan situation as well as difficulties and problems, thereby finding timely solutions. Currently, the provincial Social Policy Bank branches have placed commune transaction offices in 65/65 communes, wards and towns across the province, with a widespread commune transaction network along with the activities of 4 entrusted associations and unions and 1,611 savings and loan groups, contributing to bringing social policy credit capital to the people quickly and effectively.

More notably, in order to improve service quality, bring customers the best experiences, in line with the trend of the digital age, the provincial branch of the Vietnam Bank for Social Policies also focuses resources on developing e-banking services under the direction of the General Director of the Vietnam Bank for Social Policies, through the installation of the VBSP SmartBanking application. Over the implementation period, up to now, many customers have conducted transactions with the bank anytime, anywhere on their smartphones.

With flexible and specific solutions in administrative procedure reform, optimizing transaction time, not only demonstrating the sense of responsibility of bank staff towards the poor and other policy subjects but also contributing to accelerating the progress of lending programs. Through the first 2 months of 2024, the provincial branch of the Social Policy Bank disbursed 201 billion VND/3,799 customers; bringing the total outstanding balance of policy credit programs to 3,589 billion VND, an increase of 80 billion VND compared to the beginning of the year, with 81,521 customers using capital.

According to Mr. Le Minh Loc, Director of the Provincial Social Policy Bank branch, with the determination to successfully complete the planned targets and assigned tasks in 2024, the branch has strengthened the direction of credit officers to monitor the area and actively advise local Party committees and authorities to synchronously implement solutions to improve the quality of operations of commune-level People's Committees and savings and loan groups. Coordinate with socio-political organizations entrusted with management and organization of loan evaluation; along with that, promote science and technology transfer activities, orient the construction and replication of appropriate production and business models, contributing to improving the efficiency of capital use.

Hong Lam

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