Effectively manage entrusted loan capital from the Social Policy Bank.

Over the years, socio- political organizations in Quang Tri province have effectively managed entrusted loan capital from the Provincial Branch of the Vietnam Bank for Social Policies (VBSP), helping to deliver policy credit capital to poor households and other eligible beneficiaries in a timely and efficient manner. Thanks to this effective work, thousands of families have had the opportunity to invest in production and business, gradually rising out of poverty sustainably.

Representatives of socio-political organizations entrusted with loan management supervise the transaction session at the Mo O commune branch of the Social Policy Bank of Dakrong district - Photo: TU LINH

Ms. Ly Thi Nga, Chairwoman of the Women's Union of Ben Quan town, Vinh Linh district, said that the union is currently managing 3 savings and loan groups with 125 members and a total outstanding loan balance of over 10 billion VND. Many economic models funded by loans, such as raising broiler chickens, growing oranges organically, and planting rubber trees, have proven effective, helping people gradually develop their economy, improve their quality of life, and make many positive contributions to their families and society.

Through the Women's Union's Savings and Credit Group in the town, social policy funds are quickly disbursed to the people, ensuring transparency, openness, and targeting the right beneficiaries, thus gaining people's trust and support. “Thanks to a 400 million VND policy loan, in 2023, the local chicken farming cooperative with 5 members expanded two farm areas, raising 25,000 broiler chickens, creating jobs for 12 workers; in the first year of operation, they made a profit of over 200 million VND after deducting expenses. In 2024, the cooperative is preparing to export the next batch of chickens. The loan has helped the cooperative invest in spacious, enclosed farm facilities; supplement breeding stock; and prevent and control diseases, protecting livestock. The model has yielded quite high efficiency,” Ms. Nga shared.

According to Ms. Truong Thi Le Chi, Vice President of the Women's Union of Vinh Linh district, through entrusted activities with the Social Policy Bank, the union has played a role in creating conditions and supporting women, especially poor women's households, to have direct access to convenient loan capital, helping women develop self-reliance in economic development, and contributing to the implementation of the national target program for sustainable poverty reduction.

The total outstanding loan balance entrusted through the Women's Union of the district reached 215 billion VND by August 2024, benefiting 2,886 households including those classified as poor, near-poor, newly escaped from poverty, students, those seeking employment, and those involved in the construction of clean water and sanitation projects in rural areas.

Currently, many women's associations at various levels in the province are doing a good job of managing entrusted loan capital, bringing the total outstanding entrusted loan balance through the Provincial Women's Union to 2,018 billion VND with 30,587 members in 723 savings and loan groups.

According to the Provincial Farmers' Association, implementing a program in coordination with the Vietnam Bank for Social Policies (VBSP), by 2023, the association had received and effectively managed capital for 23,234 members with a total outstanding loan balance of over 1,413 billion VND across 569 savings and loan groups, an increase of 240 billion VND compared to 2022. This capital contributed to promoting the movement of "Farmers competing in excellent production and business, uniting to help each other get rich and sustainably reduce poverty".

As a result, in 2023, the entire province had 27,499 households achieving the title of excellent producers and business owners at all levels (reaching 110% of the assigned target). Notable examples include the districts of Hai Lang, Trieu Phong, Cam Lo, Vinh Linh, and Dong Ha. These excellent farming households not only enriched their own families but also helped poor and disadvantaged farmers in the locality with capital, input materials, and employment opportunities to overcome poverty.

One strong socio-political organization in managing entrusted policy credit funds from the Vietnam Bank for Social Policies (VBSP) is the Provincial Veterans Association. Over the past period, the association has created favorable conditions for its members to access preferential loan capital to develop their businesses, contributing to the socio-economic development of the locality.

As of August 2024, the total outstanding loan balance managed by the association was 897 billion VND, an increase of 64 billion VND compared to 2023. Currently, 12,989 veteran households have borrowed capital from 327 savings and loan groups, of which 307 groups have good credit quality, accounting for 93.88%; there are no weak or poor-performing groups.

With a comprehensive network from the provincial to the grassroots level, the Quang Tri Provincial Youth Union has so far managed and undertaken entrusted loan activities for 9,319 members with outstanding loans of 639 billion VND.

Over the past period, along with actively coordinating the dissemination of preferential credit policies, guiding the selection of loan recipients, and providing training on entrusted loan operations, the Provincial Youth Union has also inspected and urged borrowers to use the capital for the intended purpose, repay loans on time, and accumulate savings. As a result, many Youth Union members and young people have effectively utilized policy credit funds, implemented economic models, and created jobs for many rural workers.

According to Tran Duc Xuan Huong, Director of the Provincial Branch of the Vietnam Bank for Social Policies (VBSP), the total outstanding loan balance for the credit program implemented through entrustment via four socio-political organizations has reached over 5,049 billion VND, accounting for 99.7% of the VBSP's total outstanding loan balance. Building on these achievements, the VBSP will continue to implement the direct lending method, entrusting certain tasks to the entrusted socio-political organizations.

Lending activities through socio-political organizations help to publicize and socialize the operations of the Vietnam Bank for Social Policies (VBSP), leveraging the combined strength of the entire political system; enabling people to access and benefit from preferential credit policies of the Government, creating an effective and reliable channel for capital flow for the people.

Through this lending model, poor households and other policy beneficiaries can access financial and savings services from the Vietnam Bank for Social Policies (VBSP) quickly, conveniently, safely, and effectively. The transparent and democratic loan application process has enhanced the role of the associations, ensuring that capital reaches the intended beneficiaries. At the same time, these associations have the opportunity to pay more attention to their members, making their activities more enriching.

Comment (0)