Effective management of entrusted loans from the Social Policy Bank

In recent years, socio-political organizations (CT-XH) in Quang Tri province have done a good job of managing entrusted loans from the provincial branch of the Vietnam Bank for Social Policies (VBSP), helping to bring policy credit capital to poor households and policy beneficiaries in a timely and effective manner. Thanks to this good work, thousands of families have more conditions to invest in production and business, gradually rising out of poverty sustainably.

Representatives of socio-political organizations entrusted with loan capital supervise at the transaction session of Mo O Commune Transaction Point of Dakrong District Social Policy Bank - Photo: TU LINH

Ms. Ly Thi Nga, Chairwoman of the Women's Union of Ben Quan town, Vinh Linh district, said that the association is managing 3 savings and loan groups (S&L) with 125 members, with a total outstanding debt of more than 10 billion VND. Many economic models from loan capital such as raising chickens, growing oranges in an organic direction, growing rubber trees... have been effective, helping people gradually develop the economy, improve the quality of life and make many positive contributions to their families and society.

Through the Savings and Credit Group of the Town Women's Union, social policy capital is quickly deployed to the people, ensuring transparency, publicity, and the right subjects, so it is trusted and responded to by the people. "Thanks to a policy loan of 400 million VND, in 2023, the local chicken farming cooperative with 5 members expanded two barns, raised 25,000 broilers, and created jobs for 12 workers; in the first year of operation, it made a profit of more than 200 million VND after deducting expenses. In 2024, the cooperative is preparing to export the next batch of chickens. The loan capital has helped the group invest in spacious, closed barns; supplemented intercrop breeds; prevented diseases and protected livestock. The model has brought quite high efficiency", Ms. Nga shared.

According to Vice President of the Women's Union of Vinh Linh District, Truong Thi Le Chi, through the entrusted activities with the Vietnam Bank for Social Policies, the union has promoted its role in creating conditions and supporting women, especially poor women's households, to have the opportunity to directly access favorable loan sources, helping women promote their economic autonomy, contributing to the implementation of the national target program on sustainable poverty reduction.

The total outstanding loan balance entrusted to the District Women's Union by August 2024 reached 215 billion VND with 2,886 households belonging to the poor, near-poor, newly escaped poverty, students, job creation, construction of clean water and environmental sanitation works in rural areas.

Currently, many levels of women's unions in the province have done a good job of managing entrusted loans, bringing the total outstanding loans entrusted through the Provincial Women's Union to date to VND 2,018 billion with 30,587 members in 723 savings and credit groups.

According to the Provincial Farmers' Association, implementing the program in coordination with the Vietnam Bank for Social Policies, by 2023, the association had entrusted and well managed capital for 23,234 members to borrow with a total outstanding loan of more than VND 1,413 billion at 569 savings and credit groups, an increase of VND 240 billion compared to 2022. This capital source contributed to promoting the movement "Farmers compete in production, good business, unite to help each other get rich and reduce poverty sustainably".

Thanks to that, in 2023, the whole province has 27,499 households achieving the title of good production and business at all levels (achieving 110% of the assigned target). Notable units are: Hai Lang, Trieu Phong, Cam Lo, Vinh Linh, Dong Ha. Good production and business farming households not only enrich their families but also help poor farming households with difficult circumstances in the locality with capital, input materials, and jobs to escape poverty.

A strong CT-XH organization in managing policy credit capital from the VBSP is the Provincial Veterans Association. In recent times, the association has created favorable conditions for members to access preferential loans for economic development, contributing to the socio-economic development of the locality.

As of August 2024, the total outstanding debt managed by the association is VND 897 billion, an increase of VND 64 billion compared to 2023. Currently, there are 12,989 veteran households borrowing capital from 327 savings and credit groups, of which 307 savings and credit groups have good credit quality, accounting for 93.88%; there are no weak or poor groups.

With a complete network from provincial to grassroots levels, up to now, Quang Tri Provincial Youth Union has managed and undertaken entrusted lending work for 9,319 members with outstanding loans of 639 billion VND.

In recent times, along with actively coordinating the dissemination and popularization of preferential credit policies, guiding the assessment of loan recipients, and training in trust operations, the Provincial Youth Union has also inspected and urged borrowers to use capital for the right purposes, repay debts on time, and save and accumulate savings. As a result, many union members and youth have effectively promoted policy credit capital, implemented economic models, and created jobs for many rural workers.

Director of the Provincial Branch of the Vietnam Bank for Social Policies, Tran Duc Xuan Huong, said that up to now, the total outstanding loan balance of the credit program implemented under the entrustment method through 4 social-political organizations has reached more than 5,049 billion VND, accounting for 99.7% of the total outstanding loan balance of the Vietnam Bank for Social Policies. Promoting the achieved results, the Vietnam Bank for Social Policies continues to implement the direct lending method with entrusting some work contents to the entrusted social-political organizations.

Entrusted lending activities through social organizations help publicize and socialize the activities of the Vietnam Bank for Social Policies, promote the combined strength of the entire political system; help people access and enjoy preferential credit policies of the Government, creating an effective and reliable capital channel for the people.

Through this form of lending, poor households and other policy beneficiaries can access financial and savings services of the Vietnam Bank for Social Policies quickly, conveniently, safely and effectively; the public and democratic evaluation of loan households has promoted the role of the association, ensuring that capital reaches the right beneficiaries. At the same time, the association has the opportunity to pay more attention to its members, making the association's activities more diverse.

Tu Linh

Source: https://baoquangtri.vn/quan-ly-hieu-qua-von-vay-uy-thac-tu-ngan-hang-chinh-sach-xa-hoi-188695.htm