Savings and credit groups (S&C) are an important part of the lending process of preferential capital trust of the Vietnam Bank for Social Policies through the system of mass organizations. Clearly identifying this, the Vietnam Bank for Social Policies has actively coordinated with local Party committees and authorities to strengthen solutions to improve the quality of S&C activities in the area.
Phu Tho Town Social Policy Bank trained and instructed union and organization officials, and leaders of Savings and Credit Groups on how to install and use the Social Policy Management application software.
Promote efficiency
The Phu Tho Town Social Policy Bank is one of the units that always focuses on improving the quality of operations of the Savings and Credit Group network at the grassroots level. To ensure the fast and convenient transfer of policy credit capital (TDCS) to the right beneficiaries, while at the same time managing, preserving and developing the State's capital well, the Bank assigns local staff to closely follow the grassroots level, regularly guide, review and evaluate the activities of the groups in a timely manner. Currently, the Phu Tho Town Social Policy Bank has 173 savings and credit groups at the grassroots level with 5,513 members, with outstanding loans reaching nearly 300 billion VND.
Taking us to visit some economic development models managed by her group, Ms. Le Thi Duc - Head of the Savings and Credit Group of the Women's Union of Phu Hung area, Ha Thach commune said: Every month, we participate in a meeting at the Commune Transaction Point. Here, bank officers in charge of the area, representatives of mass organizations and leaders of the Savings and Credit Groups exchange and share experiences, learn good practices in consulting, supporting and guiding members of the Group to effectively promote loans. It is known that the Phu Hung Savings and Credit Group currently has 38 members, with outstanding loans of nearly 1.6 billion VND. The loans are used by members for the right purposes, with no overdue debts.
Not only focusing on implementing the assigned annual credit plan targets, Cam Khe District Social Policy Bank also always seeks solutions to improve credit quality, limit bad debt, and ensure that the TDCS capital is used for the right purpose and effectively by beneficiaries. Accordingly, the Bank actively coordinates in implementing inspection and supervision work; regularly consolidates, improves, and evaluates the quality of operations of the Savings and Credit Groups. The district currently has 371 groups, of which the Farmers' Association has 119 groups, the Women's Association has 96 groups, the War Veterans' Association has 84 groups, and the Youth Union has 72 groups. The District Farmers' Association is an organization that is considered a bright spot in implementing the task of entrusting loans to support members in economic development.
Ms. Do Thi Thay - a member of the Thang Loi Association, Tuy Loc Commune, said: My family is a poor household, so the Credit and Savings Group pays a lot of attention to it. In addition to guiding the application for a preferential loan of 80 million VND, the group and credit officers also advise the family on choosing and implementing economic projects suitable to their conditions and circumstances. And the model of investing in cattle and buffalo barns is the choice of my family for its high economic efficiency. Up to now, my family has a stable income, life is less difficult than before. The happiest thing is that my family is no longer on the list of poor households.
It can be seen that the quality of the savings and credit group's operations determines the effectiveness of policy credit programs. The Social Policy Banks in the system have proactively coordinated with the authorities and organizations to strengthen, consolidate, and improve the quality of credit operations and the quality of operations of 3,657 savings and credit groups in the area. Accordingly, the entrusted organizations and the management boards of savings and credit groups maintain the stable, safe, and effective operation of the group system at 225 commune transaction points.
Cam Khe District Farmers' Association inspected the actual effectiveness of using loan capital to invest in livestock farming models of member Nguyen Xuan Thuy's family at Dong Phai Branch, Nhat Tien Commune.
Continue to affirm the role
According to information from the Provincial Social Policy Bank Branch, by the end of 2024, the total outstanding loan balance entrusted through the Savings and Credit Group system in the whole province will reach more than 6,580 billion VND, accounting for 99.69% of the total outstanding balance of the entire Branch, an increase of 9.76% compared to 2023. In which, the transaction rate at the Commune Transaction Point disbursement point reached 97.99%; principal collection reached 97.08%; interest collection rate reached 99.95%.
The activities of the savings and credit groups are stable, orderly, and increasingly improving in quality. Currently, the percentage of savings and credit groups in the whole province classified as good or good is 97.5%, with no groups classified as poor. The quality of credit institutions in the whole province is classified as good. The savings and credit groups have been affirming their important role in transferring credit institutions to the people.
Tan Son district currently has 338 savings and credit groups operating effectively in 172 residential areas, of which 316 groups are classified as good, accounting for 93.5%, and no groups are classified as weak. The total outstanding loans through savings and credit groups to date are more than 648 billion VND with 10,960 households receiving loans, accounting for 99.84% of the total outstanding loans at the bank.
Comrade Tang Tien Sy - Director of the Social Policy Bank of Tan Son district shared: For a mountainous district like Tan Son, the role of associations and savings and credit groups is very important, truly becoming the "extended arm" of the bank in transferring credit capital to beneficiaries. Therefore, the district always pays attention to training and coaching for this team. Through the training and coaching process in the "hands-on" method, most of the savings and credit group leaders have mastered the banking procedures and operations as required.
Based on the outstanding loans and monthly credit quality, the social policy bank system in the province, together with the poverty reduction committees of communes, towns, associations, unions, and savings and credit groups, organizes the assessment and classification of savings and credit groups. At the same time, fully and promptly implement support policies, reward and encourage entrusted units. Thanks to that, the sense of responsibility of the organizations for the activities of the social policy has been promoted.
Along with that, the Bank actively coordinated with the authorities and organizations to organize hundreds of training courses, training on procedures and skills for thousands of cadres of associations, organizations, commune-level poverty reduction committees, area heads and management boards of savings and credit groups entrusted by the bank, transferring credit capital to beneficiaries. The Bank also regularly inspected and reviewed the operation process of savings and credit groups in the locality; actively guided savings and credit groups and management boards of savings and credit groups on procedures and processes for lending and depositing savings; how to record, monitor, inspect and supervise borrowers in using capital. In addition, meetings were increased at commune transaction points to quickly deploy solutions to promote the effectiveness of loan capital. In the process of managing and using loans, the groups were supported by the bank to promptly resolve arising problems, contributing to improving the effectiveness of implementing preferential credit policies in the locality.
Realizing the importance of digital transformation, implementing the direction of the General Director of the Bank for Social Policies on deploying the TDCS Management application, units in the system have trained the Savings and Credit Groups to install and use the TDCS Management application, including instructions on paying interest and deposits of the group via the TDCS Management App. Since the application was deployed in October 2024, 3,620 Savings and Credit Groups (reaching a rate of 99%) have been proficient in using and paying interest and deposits of the group via the App. This application not only helps shorten transaction time but also creates conditions for Savings and Credit Groups to access modern financial products and services, gradually familiarize themselves with digital technology, thereby promoting credit growth.
Comrade Truong Viet Phuong - Director of the Provincial Branch of the Bank for Social Policies affirmed: Promoting the achieved results, in the coming time, along with continuing to effectively implement Directive 40 and Conclusion 06 of the Secretariat on strengthening the leadership of the Party over the policy of credit, the Bank for Social Policies will continue to promote the mobilization of large capital sources, ensuring timely transfer of policy capital to the right beneficiaries. At the same time, strengthen solutions to improve the quality of lending trust activities, the quality of operations of the entire system of transaction points and the network of savings and credit groups in residential areas, in order to meet the borrowing needs of the people, contributing to the successful implementation of the goal of sustainable poverty reduction.
Phuong Thao
Source: https://baophutho.vn/nang-cao-chat-luong-hoat-dong-to-tiet-kiem-va-vay-von-226317.htm
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