Effectiveness of policy credit delegation

Ms. Nguyen Thi Hanh (right) discussed with Ms. Huynh Thi Thu about implementing policy credit entrustment in Tam Ky ward. Photo: QUANG VIET

The method of entrusting policy credit through associations and unions is a creative way, suitable to the city's socio -economic characteristics, so it has promoted positivity. Through practical implementation, it shows that the lending process is streamlined, the capital after disbursement is used by borrowers for the right purpose, and people's investment is effective.

Notes from practice

By the end of October, the Transaction Office of the Quang Nam Social Policy Bank had entrusted 33.8 billion VND to the Women's Union of Tam Ky ward to bring capital to poor and policy households.

Ms. Nguyen Thi Hanh, Vice President of the Women's Union of Tam Ky Ward, said that by the end of October, 18 savings and loan groups had been established to effectively disburse capital to 1,780 women through 9 loan programs including loans for poor, near-poor, newly escaped-poverty households, loans for students, loans for investment in social housing, etc.

According to Ms. Hanh, receiving capital entrusted by the Transaction Office of the Quang Nam Social Policy Bank is one of the key tasks of the unit. From there, transferring policy credit to members so that women have resources to invest in economic development, sustainable poverty reduction and building an increasingly strong association.

Tam Ky Ward Women's Union has introduced and implemented policy credit programs associated with consulting and supporting women in starting businesses, building production and business models, providing services, developing production, and solving employment problems in the locality.

question 2 — The Transaction Office of the Quang Nam Bank for Social Policies held a meeting at the transaction point in Tam Ky ward. Photo: QUANG VIET

“We monitor and inspect the capital management of savings and loan groups and borrowers. Through inspection, borrowers pay interest and repay principal according to regulations. We are very happy that most of the women who borrow capital do business effectively, reduce poverty, contribute to building civilized urban areas, stabilize social security, and ensure social order,” said Ms. Hanh.

Ms. Huynh Thi Thu is one of 18 leaders of the savings and loan groups managed by the Women's Union of Tam Ky Ward. Ms. Thu said that the savings and loan group of block 5 (Tam Ky Ward) currently has an outstanding debt of nearly 2 billion VND with 40 households still borrowing. The savings and loan group of block 5 has not incurred overdue debt, ensuring credit quality for many years. The loan capital has been effective in helping people stabilize their economy, invest in housing, and raise their children properly.

“The loan application review and loan disbursement processes are all carried out openly and transparently. We coordinate with women’s cadres and policy bank cadres to check people’s capital use, thereby promoting the efficiency of capital use and spreading the profound meaning of preferential lending activities,” said Ms. Thu.

Spread widely

The Tay Giang Social Policy Bank Transaction Office closely coordinates with socio- political organizations to entrust loans to members. Thanks to that, people have resources to invest in production and business effectively, increase income, escape poverty, actively contribute to building new rural areas, creating a new look for ethnic minority and mountainous areas.

question 3 — The Transaction Office of Thang Binh Social Policy Bank entrusted capital to the Veterans Association of Thang Phu commune to help people develop pepper cultivation. Photo: QUANG VIET

Mr. Vu Dinh, Director of the Transaction Office of Tay Giang Social Policy Bank, said that by the end of October, the total outstanding policy credit balance in the three communes of Tay Giang, Hung Son, and A Vuong was more than 317 billion VND with 4,397 households still borrowing. Of which, the outstanding balance entrusted through the farmers', women's, veterans' and youth unions was nearly 317 billion VND with 4,366 households still borrowing.

According to Mr. Dinh, the socio-political organizations that received loan capital entrustment have fully implemented the entrustment contents such as organizing inspections and supervising the activities of savings and loan groups, coordinating with policy banks to review and prepare risk handling records, and participating in meetings at commune transaction points.

Mr. Tran Quoc Tuan, Director of the Transaction Office of Thang Binh Social Policy Bank, said that by the end of October, the total outstanding policy credit balance in the communes of Thang Binh, Thang An, Thang Dien, Thang Truong, Thang Phu, Dong Duong was more than 1,000 billion VND with 16,361 customers still in debt. Of which, outstanding debt entrusted through associations and unions accounted for 99.6% of the total outstanding debt.

After 4 months of arranging administrative units, the activities of receiving entrusted loans from associations and organizations have been ensured, thereby, ensuring smooth and seamless policy credit activities, helping people to invest and do business effectively.

It can be affirmed that the role of associations and unions in entrusting capital from policy banks to the people is particularly important. Accordingly, policy credit capital brings practical benefits to the people. Promoting the role of socio-political organizations will continue to be an important solution to promote and spread the role of policy credit in the city's socio-economic development.

Source: https://baodanang.vn/hieu-qua-uy-thac-tin-dung-chinh-sach-3309914.html