Loan Group - An effective bridge between people and banks

The close coordination between Agribank Bac Lieu branch and the Provincial Farmers' Association in promoting lending through farmers' loan groups has helped people easily access capital, develop production and business, reduce costs and travel time in the loan process... Establishing an effective capital channel Implementing credit policies according to Decree No. 55/2015/ND-CP dated June 9, 2015 of the Government for the period 2016 - 2020, tasks and solutions to improve the effectiveness of implementing the Inter-sectoral Agreement for the period 2021 - 2025, Agribank, Vietnam Farmers' Association, Vietnam Women's Union are continuing to maintain the stable operation of loan groups, suitable to the business environment in each region and the development orientation of Agribank's credit activities, products and payment services as well as to create an effective capital channel and capital management for customers.

Loan group - effective capital channel of Agribank. Photo: Luu Ly

By April 30, 2024, the number of households borrowing capital through groups at Agribank Bac Lieu branch was 2,265 households, including 172 loan groups with outstanding loans of 165.1 billion VND. On average, each loan group has 14 members; the average outstanding loan per group is 960 million VND; the average outstanding loan per group member is 73 million VND. Through that, Agribank has created conditions for households to access capital quickly and effectively, especially in remote areas, remote areas, and ethnic minority areas; contributing to repelling usury and "black credit"; limiting the situation of selling goods and agricultural products in rural areas. At the same time, helping farmers learn from each other's experiences to improve efficiency in production and business. In addition, lending through groups helps customers reduce costs and travel time. The loan capital is also monitored and supervised by the head of the loan group, so that the loan money is basically used by customers for the right purpose; the collection of principal and interest is more frequent and contributes to ensuring capital safety. Mr. Duong Quoc Su - Director of Agribank Bac Lieu province, said that Agribank province will continue to coordinate with mass organizations, especially the Farmers' Association to promote lending through the group, thereby creating conditions for customers to easily access loans, improving the quality of credit lending through the group; deploy the provision of credit products and payment services, banking - insurance linkage services to members of the loan group... "In addition, we will coordinate with the Provincial Farmers' Association to build highly effective production and business models from the Agribank loan group. Strive for annual loan balance through the group to increase by 15% or more and the number of members to increase by at least 10% or more; the interest rate is 95% or more; the bad debt ratio is less than 1%/loan balance through the group... Build effective production and business models from the loan group of farmers, at least each district, city, town has 3 models/year" - Mr. Duong Quoc Su said. Continue to coordinate so that capital reaches its destination Mr. Duong Quoc Su added that in the coming time, the Branch will seek the support of local Party committees, authorities and Associations at all levels, continue to effectively implement Decree No. 55/2015/ND-CP and Decree No. 116/2018/ND-CP of the Government on credit policies for agricultural and rural development. Along with that, Agribank Bac Lieu province will continue to coordinate well between Agribank where the loan is made, Associations at all levels and leaders of loan groups in disseminating the benefits of borrowing through the group. At the same time, regularly exchange information, organize periodic meetings, check and monitor the loan situation of group members; deploy and apply automatic lending and debt collection transactions, non-cash payment services through electronic transaction channels to meet the provision of diverse credit, payment and insurance products and services for individual customers through the professional activities of the lending group, ensuring that the lending group's operations are continuous and effective, best serving the needs of customers for using loans and payment services. Mr. Duong Quoc Su emphasized that the growth of outstanding loans through the group must be associated with ensuring credit quality, increasing the number of group members and the number of products and services. At the same time, mobilize group members to use insurance products such as Credit Security; property and livestock insurance to limit risks in agriculture... Agribank promptly grasps the market situation, production and business capacity, loan needs, assesses loan conditions, promptly disburses loans, manages loans and collects debts according to the committed term; strictly comply with regulations on the operation of loan groups, limiting credit risks. Sharing more about the benefits of lending through groups, Mr. Phan Van Ba ​​- representative of Agribank in the Southwest region said that lending through loan groups is an important policy that Agribank has implemented for many years because of its superiority, saving time for borrowers and Agribank credit officers; contributing to creating favorable conditions for disseminating Agribank's credit policies, credit for agriculture and rural areas to households in a timely manner. Currently, the Southwest region has over 2,400 loan groups managed by the Farmers' Association with more than 62,000 members, outstanding loans of over 7,500 billion VND. Mr. Phan Van Ba ​​further emphasized that lending through groups and farmers' associations needs to be paid more attention and promoted in the coming time because the room for lending through groups in Bac Lieu is still very large. Lending groups need to continue to pay attention to creating favorable conditions for borrowers, eliminating the fear of accessing capital; improving the quality and quantity of lending activities through groups. In addition, leaders of lending groups need to pay attention to protecting customer information, supporting timely loan procedures so that households can access loans with peace of mind. Thereby, contributing to Agribank Bac Lieu province effectively and promptly deploying lending activities through groups to people in the coming time.

Vase - Cup

Source: https://daibieunhandan.vn/tai-chinh-doanh-nghiep/to-vay-von---cau-noi-dac-luc-giua-nguoi-dan-va-ngan-hang-i376119/