Establish effective capital channels

Implementing the credit policy according to Decree No. 55/2015/ND-CP dated June 9, 2015 of the Government for the period 2016 - 2020, tasks and solutions to improve the effectiveness of implementing the Inter-sectoral Agreement for the period 2021 - 2025, Agribank, Vietnam Farmers' Union , Vietnam Women's Union are continuing to maintain stable lending group operations, in accordance with the business environment in each region and the development orientation of Agribank's credit activities, products, and payment services as well as to create a channel for capital mobilization and effective capital management to customers.

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Through the loan group model, Agribank has created conditions for households to access capital quickly and effectively, reducing costs and travel time, especially for remote areas, ethnic minority areas; contributing to pushing back the evils of usury, "black credit"; limiting the situation of selling goods and agricultural products at a low price in rural areas. At the same time, helping farmers learn from each other's experiences to improve efficiency in production and business.

Loan capital is also monitored and supervised by the loan team leader, so that customers basically use the loan for the right purpose; the collection of principal and interest is more frequent and contributes to ensuring capital safety.

Continue efforts to get capital "to the destination"

Mr. Duong Quoc Su - Director of Agribank Bac Lieu branch said that as of April 30, 2024, the number of households borrowing capital through groups at Agribank Bac Lieu branch was 2,265 households including: 172 loan groups with outstanding loans of 165.1 billion VND. On average, each loan group has 14 members. The average outstanding loan per loan group is 960 million VND. The average outstanding loan per group member is 73 million VND.

Agribank representative added that the Branch will continue to more effectively implement the coordination between Agribank where the loan is made, the association levels and the group leaders of the loan group in disseminating the benefits of borrowing through the group; at the same time, organize the construction of production and business models from the group of farmers borrowing from Agribank, at least each district, city and town has 3 models/year. Strive for the annual outstanding loans through the group to increase by 15% or more and the number of members to increase by at least 10% or more; the interest rate will reach 95% or more; the bad debt ratio will be less than 1%/ outstanding loans through the group...

In addition, the Branch and the association levels, the loan group leaders will increase information exchange, organize regular meetings, check and monitor the loan situation of the group members. In addition, to ensure the operation of the loan group is continuous, effective, best serving the needs of customers for loan capital and payment services, the Branch continues to deploy and apply loan transactions, automatic debt collection, non-cash payment services through electronic transaction channels to meet the provision of diverse credit, payment and insurance products and services for individual customers through the professional activities of the loan group.

Mr. Duong Quoc Su emphasized that the growth of outstanding loans through the group must be associated with ensuring credit quality, increasing the number of group members and the number of products and services. At the same time, encourage group members to use insurance products such as: credit security; property and livestock insurance to limit risks in agriculture.

Mr. Phan Van Ba ​​- Deputy Head of Agribank Representative Office in the Southwest region shared: “Lending through loan groups is an important policy that Agribank has implemented for many years because of its superiority, saving time for borrowers and Agribank credit officers. This contributes to facilitating the dissemination of Agribank's credit policies and agricultural and rural credit to households in a timely manner. Currently, the Southwest region has over 2,400 loan groups managed by the Farmers' Association with over 62,000 members, outstanding loans of over 7,500 billion VND”.

Mr. Phan Van Ba ​​recommended that loan groups should continue to pay attention to creating favorable conditions for borrowers, eliminating the fear of accessing capital; improving the quality and quantity of lending activities through groups. In addition, loan group leaders should pay attention to protecting customer information, supporting timely loan procedures so that households can access loans with peace of mind; thereby, contributing to Agribank Bac Lieu province effectively and promptly deploying lending activities through groups to people in the coming time.

Ngoc Diep