Transactions at the commune level, reducing costs for the poor to borrow capital

Staff of the Social Policy Bank guide customers on policy loan procedures at the transaction point in Chieng Pha commune, Thuan Chau.

Attending and witnessing the transaction session of the staff of the Social Policy Bank (CSXH) Transaction Office of Thuan Chau district in Chieng Pha commune. Although it was not yet working hours, the leaders of the savings and loan groups and many households had gathered at the hall of the Commune People's Committee.

Ms. Lo Thi Hoan, Huoi Quynh village, Chieng Pha commune, shared: In November 2024, through the Women's Union, my family was given a loan of 100 million VND from the job creation loan program by the Social Policy Bank to invest in 2 hectares of coffee. The procedures for borrowing capital from the Social Policy Bank through the transaction point in the commune were carried out quickly, from registration, appraisal, guidance on procedures at the loan group, and monthly interest payments were very convenient, helping me save time and effort.

Transaction session of the Social Policy Bank Transaction Office of Thuan Chau district in Chieng Pha commune.

The Transaction Office of the Social Policy Bank of Thuan Chau District is currently opening 28 transaction points in communes and towns. The specific working transaction time at the commune transaction points is set to take place from the 6th to the 22nd of each month, including Saturdays and Sundays. In addition to arranging 1 officer to monitor the area, during transaction sessions, officers and employees of the District Bank Transaction Office will receive loan applications, disburse, collect debts, collect interest, collect savings and implement debt settlement procedures; disseminate, propagate and publicize preferential credit policies for poor households, near-poor households and other policy beneficiaries; hold meetings with heads of savings and loan groups and entrusted socio- political organizations.

Mr. Nguyen Thanh Tuyen, Director of the Transaction Office of the Social Policy Bank of Thuan Chau District, said: The unit is implementing 17 credit programs, with a total outstanding debt of VND 941.6 billion, with 16,697 borrowers. Thanks to the implementation of fixed transactions in the commune, the difficulties and errors of people in preparing documents and loan procedures have been resolved, contributing to raising awareness of debt repayment and interest payment of borrowers, especially debt in installments according to regulations, urging the collection of overdue debt more effectively. Up to now, the overdue debt rate in the whole district accounts for 0.05%.

In Bac Yen district, with the characteristics of a mountainous district with difficult transportation, organizing transactions at the commune level has helped people avoid having to go to the bank to transact. Ms. Mua Thi Lan, Secretary of the Ta Xua Commune Youth Union, said: The commune Youth Union is managing 4 savings and loan groups, 166 members, with a total outstanding debt of more than 8.5 billion VND. Organizing transaction sessions at the commune level has created more favorable conditions for the grassroots to participate in managing, inspecting and supervising capital sources.

Poor households and policy beneficiaries have access to capital, are guided by bank staff on how to borrow and how to use capital for the right purpose, effectively and have the habit of accumulating monthly savings to reserve for interest and principal repayment when due. Thanks to that, many households in the area have changed their thinking and working methods, risen up to escape poverty and stabilize their lives.

Staff of the Bank for Social Policies inspect the use of loans by borrowers in Muong Bon commune, Mai Son district.

Mr. Ta Van Toan, Deputy Director of the Provincial Social Policy Bank Branch, said: The Bank always accompanies and ensures policy credit capital to the poor and other policy beneficiaries. Currently, the Branch is arranging transaction points in communes, wards, towns and a system of savings and loan groups in villages, hamlets and sub-areas across the province. The Branch directs transaction offices to strictly comply with transaction procedures. At the headquarters of the Commune People's Committee, all information related to credit activities is publicly disclosed and clearly posted, in order to effectively manage and use preferential capital, contributing to promoting economic development and poverty reduction with related units.

From 2024 to present, members of the Board of Representatives at all levels have inspected and supervised 215 commune-level and 957 savings and loan groups with 5,093 borrowers. The provincial branch of the Bank for Social Policies inspected and evaluated the quality of operations at 20 commune transaction points. The branch's professional departments regularly monitor remotely on the system, contact and urge units to promptly adjust any arising problems.

Thanks to the good organization of transaction sessions at commune transaction points, credit quality has improved, and the annual operation of commune transaction points is classified as good. Up to now, the loan turnover is over 966 billion VND, with over 7,500 customers receiving loans. The total outstanding debt is over 7,157 billion VND, with over 122,000 households still having outstanding debt.

Operating at commune transaction points is a practical solution in reforming administrative procedures, optimizing transaction time, and demonstrating the sense of responsibility of bank staff towards the poor and policy beneficiaries.

Source: https://baosonla.vn/kinh-te/giao-dich-tai-xa-giam-chi-phi-cho-nguoi-ngheo-vay-von-K5mkc8aNg.html