Extended arm to bring policy capital to the people

Over the years, savings and credit groups (S&L) in Ca Mau province have affirmed their role as an important bridge, contributing to bringing policy credit capital to the people, especially poor and near-poor households and other policy beneficiaries. With a total of 2,644 S&L groups in operation, this network is truly an "extended arm" helping the State's preferential credit policy spread widely to each locality and each household.

According to statistics, out of a total of 2,644 savings and credit groups, 1,289 groups were classified as good (accounting for 48.75%), 701 groups were classified as fair (26.51%), 644 groups were classified as average (24.36%) and only 10 groups were classified as weak (0.38%). These figures partly reflect the effectiveness of savings and credit groups in the province in managing capital sources, guiding people to borrow and use capital effectively.

Mr. Nguyen Thanh Dong, Deputy Director of the Provincial Bank for Social Policies (BSP), commented: "The Savings and Credit Groups not only help the BSP to provide loans to the right subjects and for the right purposes, but also play an important role in promoting and mobilizing people to fulfill their debt repayment obligations, make regular savings deposits, and raise financial awareness in the community."

Cumulative lending turnover from the beginning of the year to date reached 640 billion VND, with 14,902 households accessing capital. Debt collection turnover reached 419 billion VND. Total outstanding debt of the whole province reached 4,633 billion VND, an increase of 220 billion VND compared to the beginning of the year, reaching 81% of the growth plan of outstanding debt assigned by the Central and local governments in 2025.

On the 6th of every month, the leaders of the Savings and Credit Group will go to the People's Committee of Tan Trung commune to conduct transactions with the district's Social Policy Bank, and households will come to receive capital disbursement.

For many households, policy loans help them stabilize their lives. A typical example is Ms. Pham Thi Lieu, Trung Cang Hamlet, Tan Trung Commune, Dam Doi District, who borrowed 20 million VND to drill a water pump for daily use. She is currently applying for additional loans to expand her mink farming model. Ms. Lieu shared: "I have been raising mink for 3 years now, currently there are hundreds of mink, the main food is fish and bananas. My wish is to access more capital to invest in expanding this model, to increase income and improve my life."

Ms. Pham Thi Lieu (right cover) hopes to receive more capital to expand her mink farming model.

Mr. Vo Van Chien, Head of the Savings and Credit Group, also the Party Secretary of Phu Dien Hamlet, Tan Trung Commune, said: "The group he manages has over 40 members, mainly borrowing capital from the clean water and environmental sanitation program, the job creation program. Thanks to the capital, people renovate shrimp ponds, release seeds, drill water pumps... Everyone complies well with paying interest on time and saving in full. This is clear evidence of the effectiveness of policy credit."

Ms. Nguyen Thi Ly, Head of the Savings and Credit Group of Thanh Vong Hamlet, Tan Trung Commune, who is managing 60 households borrowing capital, said: "Most of the households borrow from the clean water and environmental sanitation program, a source of capital to create jobs. Each household borrows from 20-50 million VND depending on their needs. Everyone is very conscious, paying interest and saving regularly. This capital comes at the right time, helping people improve their living conditions and have more income."

One of the notable points is the convenience in accessing policy capital. For example, Ms. Nguyen Thi Hanh, Trung Cang Hamlet, Tan Trung Commune, borrowed 30 million VND to supplement capital for importing goods for her family's small grocery store. Recently, she continued to receive 50 million VND to build a toilet and re-drill the water pump.

“The loan source is easy to access, the interest rate is low, and the monthly payments are easy. Every month, someone comes to my house to collect the interest, so I don’t have to go far. Disbursement right at the commune People’s Committee is also very convenient,” said Ms. Hanh.

The closeness of the savings and credit groups to the people has helped people reduce financial pressure and avoid having to seek informal loans with high interest rates. At the same time, regular savings in the groups also form good financial habits, helping households to repay the principal easily.

In addition to many positive results, the system of savings and credit groups in the province still has some limitations such as: Some groups are classified as average and weak; overdue debts and outstanding interest still occur locally. In response to this reality, the provincial People's Credit Fund has been focusing on consolidating and improving the quality of savings and credit groups.

According to Mr. Nguyen Thanh Dong, in the coming time, the bank will focus on consolidating weak and average groups, while improving the quality of the group management team. “We focus on selecting capable and responsible people to participate in group management. At the same time, we will train and rejuvenate the group leaders and deputy group leaders to meet the requirements of digital transformation and technology application in policy credit activities,” Mr. Dong emphasized.

Savings and credit groups are not only an “extended arm” of the Vietnam Bank for Social Policies, but also a solid financial support for tens of thousands of rural households. Continuing to improve the quality of organization and management of savings and credit groups is a key factor for policy capital to continue to be effective in poverty reduction, new rural construction and sustainable socio -economic development./.

Phuc Duy

Source: https://baocamau.vn/canh-tay-noi-dai-dua-von-chinh-sach-den-dan-a39497.html