Policy credit helps develop the economy, eliminate hunger and reduce poverty sustainably in Gia Lai

To ensure that policy credit reaches the intended beneficiaries quickly and effectively, the Gia Lai Provincial Social Policy Bank has proactively coordinated with local authorities and associations to review and accurately identify each eligible borrower; and disseminated information about credit programs to the people so that they are aware of and can access loans.

Policy credit helps develop the economy and sustainably alleviate poverty in Gia Lai - Photo 1.

Mr. Dinh Quoc Hiep, from Hoai An commune, has benefited from policy-based credit on numerous occasions.

The provincial Social Policy Bank, in coordination with associations and organizations, has consolidated and strengthened 5,806 savings and loan groups in all 135 communes and wards, creating these groups to become "extended arms" of the bank in bringing social policy credit to eligible beneficiaries.

The bank has also established 373 transaction points in communes and wards, making it easier for people to access and borrow capital, while also improving the inspection and supervision of credit transactions.

Ms. Nguyen Thi Yen, head of the savings and loan group in An Long 1 village, under the Women's Union of Canh Vinh commune, said that from the loan approval process to the disbursement of funds, everything is done openly and transparently; with supervision from the bank, associations, organizations, and the commune's poverty reduction committee. In particular, loan recipients receive advice from provincial and commune authorities on investment plans and guidance on production and livestock farming processes to maximize the benefits from the borrowed capital.

Thanks to this, the management, use of loan capital, and repayment of loans by the savings and loan group are very smooth. Currently, 60 members of the group have borrowed nearly 5 billion VND from the Van Canh Social Policy Bank; 100% of members use the loan capital effectively and have deposited savings through the group.

In 2023, through the savings and loan group of Lam Truc 2 neighborhood, managed by the Hoai Nhon ward youth union, Mr. Nguyen Xong borrowed 80 million VND from the Hoai Nhon Social Bank to purchase a grinding machine, a drying machine, and a vacuum machine to serve the processing of products from lotus plants.

Mr. Xong shared that the OCOP program has helped him invest in upgrading equipment and machinery, increasing productivity, ensuring food safety and hygiene, and improving product quality by preserving both the medicinal properties and fragrance of lotus. Currently, his facility has two products that have achieved OCOP 3-star status, and the "Sen Năm Xong" branded product is trusted by consumers in Da Nang , Gia Lai, Khanh Hoa, and Ho Chi Minh City.

Policy credit helps develop the economy and sustainably alleviate poverty in Gia Lai - Photo 2.

Mr. Nguyen Xong (far left) shares with a credit officer of the Hoai Nhon Social Policy Bank about leveraging loan capital to create products from lotus plants.

Regularly engaging with people in the villages, credit officers and heads of savings and loan groups under the Hoai An Commune Farmers' Association understand the loan needs of each household, thereby advising and guiding people in completing loan applications from various credit programs.

In particular, Mr. Dinh Quoc Hiep's household in Vinh Hoa village, Hoai An commune, has borrowed capital four times at preferential interest rates to invest in forest planting; develop livestock farming; and borrow capital for his children's education and overseas labor export.

Currently, all four of Mr. Hiep's children have gotten married, have their own lives, and are financially stable.

"Simple procedures, low interest rates, and relatively long repayment terms are the outstanding advantages of the Social Policy Bank. Therefore, whenever I need more capital for investment, I often turn to the Social Policy Bank for loans and my needs are always met," Mr. Hiep shared.

Mr. Xong and Mr. Hiep are just two of thousands of households that have received loans and effectively utilized the borrowed capital. Ms. Nguyen Thi Thao Vi, Deputy Director of the Social Policy Bank branch in the province, stated: "The bank not only provides capital to the people but also coordinates with the government and associations to advise and guide people in developing suitable investment plans to maximize the effectiveness of the borrowed capital. At the same time, we strengthen inspection and supervision, comparing loan disbursement results and capital utilization from records with reality, and promptly addressing any arising issues. As a result, both outstanding loans and credit quality have increased, with overdue loans accounting for only 0.06% of the total outstanding loans."

Comment (0)