Credit policy entrusted through associations and unions: Fast, accurate and effective

Mr. Dinh Quoc Hiep, in Hoai An commune, is a person who has benefited from policy credit many times.

Mr. Dinh Quoc Hiep, in Hoai An commune, is a person who has benefited from policy credit many times. Photo: T.Sy

In order for policy credit to reach the right beneficiaries quickly, the Provincial Social Policy Bank has proactively coordinated with local authorities and associations and organizations to review and grasp each subject eligible for policy credit; disseminate credit programs to people so that they know and can access loans.

The Bank has coordinated with associations and unions to consolidate and improve 5,806 savings and credit groups (S&L) in 135/135 communes and wards, creating S&L groups to become the "extended arm" of the Bank in bringing credit to beneficiaries. The Bank has also organized 373 transaction points in communes and wards to help people easily access and borrow capital, while helping to better inspect and supervise credit transactions.

Ms. Nguyen Thi Yen, head of the Savings and Credit Group of An Long 1 village, Canh Vinh Commune Women's Union, said: From the stage of reviewing households for loans to disbursement, everything is done openly and transparently; with supervision from banks, associations, unions and the commune poverty reduction committee. In particular, households that borrow loans are consulted by the provincial and commune authorities on investment plans, and guided on production and livestock processes... to maximize the benefits from the borrowed capital.

Thanks to that, the management, use of loan capital and debt repayment of the Savings and Credit Group that I manage are very convenient. Currently, 60 members of the group have borrowed nearly 5 billion VND from Van Canh Social Policy Bank; 100% of members effectively use the loan capital and have savings deposits through the group.

In 2023, through the Savings and Credit Group of Lam Truc 2 Quarter managed by the Youth Union of Hoai Nhon Ward, Mr. Nguyen Xong borrowed 80 million VND from Hoai Nhon Social Policy Bank to buy a grinder, dryer, and vacuum machine to serve the processing of lotus products.

Mr. Xong shared: TDCS helps me have more conditions to invest in upgrading equipment and machinery, increasing productivity, ensuring food safety and hygiene, improving product quality while preserving both medicinal properties and lotus scent. Currently, my facility has 2 products that have achieved 3-star OCOP, the product with the brand name "Sen Nam Xong" is trusted by consumers in Da Nang, Gia Lai, Khanh Hoa and Ho Chi Minh City.

Regularly working with villagers, credit officers and heads of the Savings and Credit Groups of the Hoai An Commune Farmers' Association grasp the loan needs of each household, thereby advising and guiding people to complete loan applications from many different credit programs.

Among them, Mr. Dinh Quoc Hiep's household in Vinh Hoa village, Hoai An commune, has borrowed money four times with preferential interest rates to invest in afforestation; develop livestock; borrow money for his children's education and work abroad. Currently, Mr. Hiep's four children are all married, have their own lives, and are financially stable.

“Simple procedures, low interest rates, and a long repayment period are the outstanding advantages of TDCS. Therefore, whenever I need more capital for investment, I often go to the Social Policy Bank to borrow and it is always met,” Mr. Hiep shared.

Mr. Nguyen Xong (left cover) shares with credit officers of Hoai Nhon Social Policy Bank and Hoai Nhon Ward Youth Union about promoting loan capital and creating products from lotus plants.

Mr. Nguyen Xong (left cover) shares with credit officers of Hoai Nhon Social Policy Bank and Hoai Nhon Ward Youth Union about promoting loan capital and creating products from lotus plants. Photo: T.Sy

Mr. Xong and Mr. Hiep are just two of thousands of households that have received loans and effectively utilized the loan capital. Ms. Nguyen Thi Thao Vi, Deputy Director of the Provincial Branch of the Social Policy Bank, said: The bank not only provides capital to the people but also coordinates with the government and associations and organizations to advise and guide people to develop appropriate investment plans, in order to effectively utilize the loan capital. We also strengthen the inspection and supervision of comparing loan results and loan use from books with reality, promptly handling arising problems. Thanks to that, outstanding debt and credit quality have increased together, with overdue debt accounting for only 0.06% of total outstanding debt.

Source: https://baogialai.com.vn/tin-dung-chinh-sach-uy-thac-qua-cac-hoi-doan-the-nhanh-chinh-xac-va-hieu-qua-post571423.html