The method of entrusting policy credit through associations and organizations is an innovative approach, suitable to the socio -economic characteristics of the city, and has therefore proven effective. Practical implementation shows that the lending process is streamlined, disbursed funds are used for their intended purpose, and people's investments are yielding positive results.
Observations from practice
As of the end of October, the Quang Nam Branch of the Social Policy Bank had entrusted 33.8 billion VND to the Tam Ky Ward Women's Union to provide capital to poor and policy-beneficiary households.
According to Ms. Nguyen Thi Hanh, Vice President of the Women's Union of Tam Ky Ward, by the end of October, 18 savings and loan groups had been established to effectively disburse funds to 1,780 women through 9 loan programs, including loans for poor, near-poor, and newly-escaped-poverty households, loans for students, and loans for investment in social housing…
According to Ms. Hanh, receiving entrusted funds from the Quang Nam Branch of the Social Policy Bank is one of the unit's key tasks. From there, they transfer policy credit to members so that women have resources to invest in economic development, achieve sustainable poverty reduction, and build a stronger women's association.
The Women's Union of Tam Ky ward has introduced and implemented policy credit programs associated with advising and supporting women in starting businesses, building production and business models, providing services, developing production, and creating jobs in the locality.
“We monitor and inspect the capital management of savings and loan groups and borrowers. Through inspections, borrowers are found to be paying interest and repaying principal on time. We are pleased that most of the women who borrowed capital are doing business effectively, reducing poverty, contributing to building a civilized urban area, stabilizing social security, and ensuring social order,” Ms. Hanh said.
Ms. Huynh Thi Thu is one of 18 heads of savings and loan groups managed by the Women's Union of Tam Ky Ward. Ms. Thu stated that the savings and loan group in Block 5 (Tam Ky Ward) currently has outstanding loans of nearly 2 billion VND with 40 households still having outstanding debts. The savings and loan group in Block 5 has not incurred any overdue debts, ensuring credit quality for many years. The loan capital has been effectively utilized, helping people stabilize their economy, invest in housing, and provide their children with a proper education.
“The loan application review and disbursement processes are all carried out openly and transparently. We coordinate with women's affairs officers and policy bank officers to monitor how people use the capital, thus maximizing the effectiveness of capital utilization and spreading the profound meaning of preferential lending activities,” Ms. Thu said.
Spread widely
The Tay Giang Branch of the Social Policy Bank closely cooperates with socio- political organizations to channel loan capital to their members. As a result, people have the resources to invest in production and business effectively, increase their income, rise out of poverty, and actively contribute to building new rural areas, creating a new look for ethnic minority and mountainous regions.
According to Mr. Vu Dinh, Director of the Tay Giang Branch of the Social Policy Bank, by the end of October, the total outstanding policy credit in the three communes of Tay Giang, Hung Son, and A Vuong was over 317 billion VND with 4,397 households still having outstanding loans. Of this, the outstanding loans entrusted through farmers' associations, women's associations, veterans' associations, and youth unions amounted to nearly 317 billion VND with 4,366 households still having outstanding loans.
According to Mr. Dinh, the socio-political organizations entrusted with loan capital have fully implemented the entrusted tasks, such as organizing inspections and monitoring the activities of savings and loan groups, coordinating with the policy bank to review and prepare risk management dossiers, and participating in meetings at commune transaction points.
According to Mr. Tran Quoc Tuan, Director of the Thang Binh Branch of the Social Policy Bank, by the end of October, the total outstanding policy credit in the communes of Thang Binh, Thang An, Thang Dien, Thang Truong, Thang Phu, and Dong Duong was over 1,000 billion VND with 16,361 customers still having outstanding loans. Of this, outstanding loans entrusted through associations and organizations accounted for 99.6% of the total outstanding loans.
After four months of administrative unit reorganization, the entrusted loan disbursement activities of associations and organizations have been ensured, thereby ensuring smooth and seamless operation of policy credit, helping people invest and do business effectively.
It can be affirmed that associations and organizations play a particularly important role in entrusting policy bank capital to the people. 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 socio-economic development of the city.
Source: https://baodanang.vn/hieu-qua-uy-thac-tin-dung-chinh-sach-3309914.html
