The effectiveness of the 'extended arms'

QTO - For a long time, the Savings and Loan Group (TK-VV) has been considered the "extended arm" of the Vietnam Bank for Social Policies (VBSP), constantly striving to bring preferential loans to poor households and policy beneficiaries in the whole province. The companionship of this model has contributed to helping millions of households have the conditions to escape poverty and become rich legitimately.

Following Ms. Le Thi Thu, Head of the Savings and Credit Group in Duy Vien village, Vinh Thuy commune, managed by the Vinh Linh Social Policy Bank, we had the opportunity to visit the comprehensive farm of Mr. Ngo Duc Dung (born in 1971). The farm is located far from the residential area. In addition to the closed-loop pig farm with dozens of pigs per year, he and his wife also dug two large ponds to raise about 5-6 tons of fish per year; built cages to raise 50 pairs of parent pigeons and planted many different varieties of vegetables, supplying to local people. On average, this farm brings his family an income of over 200 million VND per year.

Sharing about the 22-year journey of farm development, besides the efforts of the couple, there is also the contribution of policy credit capital, in which the Savings and Credit Group plays an important role.

“Through the evaluation of the village savings and credit group, we were able to access the loan program for near-poor households, households that have just escaped poverty, and later, loans to create jobs. These meaningful sources of capital have created a stepping stone for us to move forward and build the farm as it is today,” Mr. Dung recalled.

Through savings and loan groups, people have timely access to preferential loans - Photo: TP

Not only Mr. Dung's family, in recent years, the Duy Vien village Savings and Credit Group has promoted its role, actively propagating preferential programs; guiding, supporting and helping group members complete loan procedures for quick disbursement. At the same time, regular supervision is carried out to ensure that capital is used for the right purpose and interest is paid on time.

Ms. Thu said: “The Duy Vien village Savings and Credit Group currently has 58 members with a total outstanding debt of over 4 billion VND. During its operation, the group has always done a good job of evaluating and selecting subjects in need of loans to develop the household economy , ensuring that 100% of members use the loan effectively for the right purpose. Members strictly comply with the regulations on paying principal and interest on time, and voluntarily participate in saving through the group. Thanks to that, up to now, the group has always maintained good operations, ensuring lending and debt collection, preventing bad debts, outstanding interest, misuse of capital, and wrong beneficiaries...”.

In the localities managed by the Bank for Social Policies of Quang Ninh , there are currently about 200 Savings and Credit Groups with a total outstanding debt of 612 billion VND and over 8,000 customers with outstanding debt. In parallel with organizing regular meetings to implement the Bank for Social Policies' credit programs to the group members, the groups also proactively grasp the situation, conditions, and circumstances of each household in the group so that when there is capital, they will meet to consider lending. The assessment is under the supervision and witness of the village chief and the entrusted association organization to ensure publicity, democracy, and the right subjects. Thanks to that, in recent years, the average interest rate of the groups has always been maintained at a high level, and overdue debt is guaranteed to be under control.

Deputy Director of the Bank for Social Policies of Quang Ninh, Nguyen Xuan Hao, assessed: “In general, the savings and credit groups in the area all have effective performance and have well implemented the mandated contents signed with the Bank for Social Policies. Thanks to access to preferential loans from the Bank for Social Policies through savings and credit groups, many poor households and policy beneficiaries in the area have had the opportunity to access preferential loans to develop production, create jobs, increase income, improve living conditions, and escape poverty.”

Up to now, the whole province has 301 commune-level associations that are entrusted with lending policy credit sources with the Vietnam Bank for Social Policies, managing 3,890 savings and credit groups with a total outstanding debt of VND 11,957 billion, 157,074 households with outstanding debt.

In Quang Tri , the Savings and Credit Group model, established in 2002, is considered an important link, a direct capital channel to bring preferential capital to thousands of poor households, near-poor households and other policy beneficiaries; contributing to the elimination of usury and black credit. Every year, the Savings and Credit Group management board closely coordinates to carry out tasks assigned by the Social Policy Bank, including: Publicly reviewing loan applicants, guiding documents, monitoring the receipt and use of capital, directly collecting interest and savings deposits as well as urging timely debt repayment. The quality of the Savings and Credit Group network directly determines the credit efficiency of the Social Policy Bank.

Thanks to the connection of savings and credit groups, thousands of poor households, near-poor households, newly escaped-poverty households and other policy beneficiaries in the province have access to preferential loans to develop household economy, improve their lives, and contribute positively and effectively to the goals of economic development and social security, especially sustainable poverty reduction in the province.

Director of the Bank for Social Policies of Quang Tri province Tran Duc Xuan Huong affirmed that the Savings and Credit Group model has been promoting the strength of the entire political system, being a fast, widespread and reliable capital channel, helping capital to reach the right subjects in need in a timely manner. Through the public and democratic evaluation process, preferential credit capital has been promptly given to those in real need, saving time and costs, creating conditions for disadvantaged households to rise up, contributing to improving the efficiency of policy credit activities in the province.

“In the coming time, in order to improve the quality of operations of savings and credit groups, the Provincial Social Policy Bank will direct the grassroots level to continue to coordinate well in implementing the entrustment work; consolidate and improve the quality of operations of savings and credit groups; build and replicate advanced and effective models, ensuring service for poor households and other policy beneficiaries to have conditions to develop production and increase income,” Ms. Huong added.

Truc Phuong

Source: https://baoquangtri.vn/kinh-te/202512/hieu-qua-tu-nhung-canh-tay-noi-dai-fc36224/