Focus on disbursing preferential credit loan programs

Based on the assigned credit capital targets, the provincial branch of the Social Policy Bank promptly reported to the Provincial People's Committee, advised the Head of the Board of Directors to assign targets to districts and cities; at the same time, directed affiliated units to actively coordinate with local authorities, associations and organizations entrusted to review and approve loan applicants to ensure compliance with regulations, speed up the disbursement of credit programs, in order to promptly meet the borrowing needs of the people.

In the first quarter of 2024, the provincial branch of the Vietnam Bank for Social Policies (VBSP) focused on flexibly implementing solutions to organize the disbursement of social policy credit capital to beneficiaries, ensuring the completion of the set plan.

Based on the assigned credit capital targets, the provincial branch of the Bank for Social Policies promptly reported to the Provincial People's Committee, advised the Head of the Board of Directors to assign targets to districts and cities; at the same time, directed affiliated units to actively coordinate with local authorities, associations and organizations to receive authorization to review loan applicants to ensure compliance with regulations, speed up the disbursement of credit programs, in order to promptly meet the borrowing needs of the people. In the first 3 months of 2024, the lending turnover of the entire system reached more than 331.8 billion VND, with over 7,000 poor households, near-poor households and other policy beneficiaries receiving loans to invest in production and business; supported job creation, maintenance and expansion of jobs for 900 workers; resolved loans for more than 1,450 households to build, repair toilets and install clean water works; More than 2,600 households have received loans to cover tuition fees for students... The total outstanding balance of credit programs as of March 31, 2024 reached VND 3,619.1 billion, an increase of VND 108.3 billion compared to 2023, with more than 81,400 customers/105,772 loans.

From the loan capital from the Social Policy Bank to help women in Loi Hai commune (Thuan Bac)

Investing in livestock development. Photo: Hong Lam

Comrade Le Minh Loc, Director of the provincial branch of the Vietnam Bank for Social Policies, said: To achieve the above results, the branch always adheres to the goals of the Board of Directors, General Director of the Vietnam Bank for Social Policies, along with the attention and direction of the Provincial Party Committee, People's Council, and Provincial People's Committee, contributing to the implementation of ensuring all aspects of operations. Along with that, the unit proactively coordinates with authorities at all levels in consolidating and improving the quality of operations of 1,622 Savings and Loan Groups; fully equipping machinery and equipment at 65 commune transaction points, simplifying loan procedures, creating favorable conditions for poor households, near-poor households and other policy beneficiaries in the province when in need and eligible to access loans.

In parallel with the plan to accelerate the capital disbursement plan, so that borrowers can comply well with the Party and Government's policies and guidelines on social credit, the transaction offices of the Social Policy Bank in the districts have actively coordinated with media agencies and organizations to disseminate the loan contents, rights and responsibilities in using capital and fully implement the regulations on repayment of principal and interest as prescribed to clear the revenue source, create revolving loan capital. Accordingly, the debt collection turnover reached 223.6 billion VND, overdue debt and frozen debt is currently 38.3 billion VND, accounting for 1.06% of the total outstanding loan balance. In addition, in the process of implementing social credit, internal inspection and control work continues to be strengthened. Through inspection, it is recognized that local Party committees and authorities have grasped and fully implemented policies and preferential credit programs in the area; Organizations participating in capital management must comply with the lending procedures and processes.

According to the assessment, in addition to the achieved results, credit quality is still affected by many factors, so it is not yet sustainable, the rate of overdue debt and frozen debt is still high; according to the plan, by 2025, the local budget capital entrusted to the Social Policy Bank will reach 6-8% of the total credit capital for loans in the area, equivalent to about 220-280 billion VND, but currently only 129.6 billion VND has been entrusted.

In order to fully and promptly implement policies and guidelines on preferential credit from now until the end of the year, the provincial branch of the Bank for Social Policies focuses on accelerating the disbursement progress to beneficiaries according to the assigned growth targets, linking credit growth with improving credit quality. Promoting solutions to mobilize capital from organizations and individuals; coordinating with local authorities and socio-political organizations to receive the mandate to promote propaganda and mobilize borrowers about their rights and responsibilities when borrowing capital, linking science and technology transfer activities to help borrowers invest in developing production and business reasonably, increasing income and improving their lives.

Hong Lam

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