Promoting the effectiveness of savings and loan groups

Savings and Credit Group of Zone 3, 4, Quang Trung Ward, Uong Bi City coordinated with the Women's Union to inspect the use of loans by people.

Through the Savings and Credit Group in Quarter 12, Quang Trung Ward, Uong Bi City, Ms. Do Thi Na, Owner of Anh Duong Business Household, was able to borrow 100 million VND from the preferential credit program for job creation. With the loan, Ms. Na has had additional capital to invest in factories, facilities, and equipment for her business providing boarding meals. Currently, Ms. Do Thi Na's business is providing nearly 3,200 meals per day for 7 schools in Uong Bi City, creating jobs for nearly 30 workers with an income of 5-7 million VND/person/month.

Ms. Do Thi Na said: While struggling with a lack of capital to expand production, the Savings and Credit Group of the neighborhood introduced me to the policy credit program for job creation. The Savings and Credit Group also actively guided, supported and helped me complete the loan procedures for quick disbursement, at the same time, regularly monitored to ensure that the capital was used for the right purpose, interest was paid on time, and business was effective. Thanks to that, my business is currently developing well, with stable revenue, creating jobs for many local workers.

The Bank for Social Policies, Quang Ninh branch, lends mainly through the entrustment method to four socio-political organizations (including the Farmers' Association, the Women's Union, the Veterans' Association and the Youth Union), directly managed at the village and hamlet level by savings and credit groups.

The whole province currently has 2,135 savings and credit groups with outstanding loans of over VND 5,451 billion and 76,000 borrowers, accounting for over 98% of the total outstanding loans of the Bank for Social Policies, Quang Ninh branch.

Savings and Credit Groups are established by the People's Committees of communes and wards, operating in villages and areas with 5-60 members, performing activities such as: Reviewing loan applicants, guiding and confirming borrowers to prepare documents and procedures to submit to associations, unions and People's Committees of communes for approval, supervising capital use, directly collecting interest and monthly savings deposits from borrowers, urging debt repayment, etc.

Through the Savings and Credit Group, with access to policy credit capital, the fruit garden of Mr. Ly Hong Them, Duong Huy commune, Cam Pha city has developed well, with high economic efficiency, creating jobs for many workers.

In order to improve the quality of the Savings and Credit Groups, in recent times, the Bank for Social Policies, Quang Ninh branch, has regularly coordinated to evaluate, review, consolidate, and rearrange the groups; guide, inspect, and urge the improvement of the capacity and responsibility of group leaders in capital management and use; organize training courses; instruct groups on the processes and procedures for lending, depositing savings, recording, monitoring, and supervising households to effectively promote loan capital sources... Thanks to that, the Savings and Credit Groups have increased their responsibility, promptly reviewed households in need, propagated credit policy programs, and guided the quick completion of loan applications. At the same time, promptly grasped difficulties, monitored the use of capital, and urged debt repayment on time according to regulations, contributing to improving the quality of credit in the locality. Thereby, the overdue debt rate of the Savings and Credit Groups is only nearly 0.02%.

Ms. Truong Thi Them, Head of the Saving and Credit Team in Zone 3 and 4, Quang Trung Ward, Uong Bi City, said: To operate the Saving and Credit Team   To achieve effectiveness, I have built a good operating convention of the group, ensuring that the loan evaluation must be carried out fairly, publicly and transparently; coordinating with residential groups and neighborhoods to monitor the use of capital; regularly checking the production and business activities of borrowers to ensure the use of capital for the right purpose, effectively and with quality. Currently, my Savings and Credit Group ( 32 members) has an outstanding debt of nearly 2 billion VND. For many years, the group has had no overdue debt.

Savings and Credit Groups have affirmed their role as an extension of policy credit, contributing to timely disbursement of capital to beneficiaries, enhancing access to social policy credit for the poor and other policy beneficiaries, helping people have conditions to invest in production development, increase household income, and get rich on their homeland.

Cao Quynh

Source: https://baoquangninh.vn/phat-huy-hieu-qua-cua-cac-to-tiet-kiem-va-vay-von-3354389.html