Savings and loan groups – the 'bridge' of policy credit
Savings and loan groups are truly “extended arms”, playing a good role in assisting people with loan procedures, supporting each other in production, business, loan evaluation, etc.
Example of a good team leader who is good at public affairs and good at housework
When visiting Thanh Linh commune, Thanh Chuong district, everyone knows Ms. Nguyen Thi Kim Long - Head of the Savings and Loan Group in Trung Long village. Over the years, she has done a good job in managing policy loans, and her image has become close and familiar to the people here.
Everyone praised Ms. Nguyen Thi Kim Long - Vice President of the Women's Association and Head of the Savings and Loan Group for her enthusiasm for the association's work and dedication to the poor. Ms. Long has 12 years of experience as Vice President of the Women's Association, 5 years as Head of the Savings and Loan Group, and is always loved by the people; trusted and credited by the local Party Committee and government.
The Commune Women's Union received over 3 billion VND from the Social Policy Bank, of which Ms. Long's group alone took charge of nearly 2 billion VND. The area is large but the policy credit reaches the right subjects, the women use the loan capital for the right purpose and effectively. During her work, she also skillfully integrates the propaganda of the State's credit policies and the effects of preferential capital into the activities of the Women's Union and the Savings and Loan Group. Up to now, the Commune Women's Union has an outstanding debt with the Social Policy Bank of over 3 billion VND, lending to 67 households; of which the Savings and Loan Group managed by Ms. Long has an outstanding debt of 3 billion VND. From this source of capital, 17 women have escaped poverty, 30 households have changed from average to well-off and rich.
For many years, the Savings and Loan Group led by Ms. Long has achieved "3 nos": No interest, no overdue debt, no illegal borrowing. Sharing her experience in capital management, Ms. Long said that after a month of bank disbursement, she often takes the time to visit each household to ask about the use of loan capital of the group members, as well as listen to their concerns to promptly reflect to the bank to find solutions.
Regarding loan consideration, the group also agreed to prioritize households in particularly difficult circumstances. Every month before the transaction session at the commune, the group members meet to discuss capital use, business, etc. In addition, she regularly cares for and encourages the women to participate in training courses of the association and the Agricultural Extension Center, apply science and technology to cultivation and animal husbandry, and guide members to choose appropriate economic development models so that capital can be used effectively.
Ms. Long is a devoted Vice President of the Association, a responsible leader of the Savings and Loan Group. Her concern and enthusiasm for her work have helped people see the practical benefits of preferential capital, completely erasing their inferiority complex and self-consciousness, and boldly borrowing capital to participate in developing their family economy.
Ms. Nguyen Thi Hong Yen - President of Thanh Linh Commune Women's Union
"Bridge" helps members develop the economy
Tan Huu Hamlet, Nghia Loc Commune, Nghia Dan District is located in a remote and disadvantaged area. The whole hamlet has 95 households with 430 people, 100% of the people are Thai ethnic people, the awareness level of the people is still limited, the people mainly produce agriculture, forestry, livestock and a few do services. However, knowing how to effectively promote the loan capital of the Policy Bank, the lives of the people here have gradually changed.
Ms. Bui Thi Trang - Head of the Savings and Loan Group of Tan Huu hamlet said that the savings and loan group was established by the People's Committee of Nghia Loc commune in 2008, under the management of the Women's Union. During its operation, our group has always done a good job of evaluating and selecting subjects in need of loans to develop the household economy and the Women's Union of the commune has conducted checks before, during and after lending, ensuring that 100% of members use the loan effectively for the right purpose. Members strictly comply with the regulations on paying principal and interest on time, voluntarily participate in saving through the group, with a minimum monthly deposit of 100,000 VND/member.
Therefore, in the period from 2014 to 2024, the group has always maintained good operations, ensuring lending and debt collection, avoiding bad debts, outstanding interest, misuse of capital, and wrong beneficiaries... This has brought about clear results in promoting the effectiveness of preferential policy capital. In 2014, the group's outstanding debt was 1.2 billion VND, as of June 30, 2024, the group had 60 members with a total outstanding debt of 2.9 billion VND. From the borrowed capital, currently, households in the group have 70 buffaloes, cows, 90 goats, 210 pigs, built 29 clean water works meeting national standards and 29 sanitary works ensuring hygiene, with 1 household engaged in traditional brocade weaving.
Some poor households without capital for production, thanks to loans from the Policy Bank, have risen out of poverty, such as the families of Ms. Lo Thi Lan, Ms. Ho Thi Cuong, Ms. Vi Thi Hoi... Many near-poor households have risen to become well-off households, many areas of bare hills have been covered with green, people's living conditions are hygienic, and villages are becoming more spacious and beautiful.
“Thanks to the effective use of loans, the poverty rate of the hamlet has decreased from 17.3% in 2014 to 7.29% in 2024. In 2021, the hamlet was recognized as meeting the criteria of a Cultural Village and was selected by the Commune People's Committee to build a pilot model for preserving and promoting the cultural beauty of the Thai ethnic group. And in particular, in 2024, the Tan Huu hamlet Savings and Loan Group was selected by the Nghe An Provincial Women's Union to direct the construction of a pilot model of "Sustainable Savings and Loan Group, associated with community activities", Ms. Trang shared.
Improve the quality and efficiency of the savings and loan network
Up to now, the Government's credit capital has been deployed by the Social Policy Bank of Nghe An province to 100% of districts, communes and towns in the province.
With the goal of maximizing operational efficiency, reducing management costs, the method of transferring and managing policy credit capital, the lending method of entrusting some tasks through socio-political organizations, organizing transactions at the commune level and connecting with the network of Savings and Loan Groups operating deeply to the villages and hamlets is an effective method of operation.
As of June 30, 2024, Nghe An has 84 district-level associations and 1,726 commune-level associations that are entrusted to lend policy credit capital to the Social Policy Bank at all levels, managing 6,146 Savings and Loan Groups in 3,804 villages and hamlets across the province (ensuring that 100% of villages and hamlets have Savings and Loan Groups in operation); 460 communes, wards and towns have been opened transaction points by the Social Policy Bank and conduct monthly transactions on a fixed day. Thereby, creating the most favorable conditions for customers when they need to learn about and access policy credit capital.
Mr. Hoang Son Lam - Deputy Director of the Bank for Social Policies, Nghe An branch shared: With this model, the strength of the entire political system has been promoted, which is a fast, widespread and reliable capital channel serving the poor and other policy beneficiaries; preferential credit sources are evaluated publicly, fairly and democratically; beneficiaries receive loans promptly at their place of residence, creating conditions to save maximum time and costs for borrowers, and management costs for the budget.
The team of leaders of the Savings and Loan Groups is considered as the "extended arms" of the Social Policy Bank, performing well the role of management, policy propaganda, helping entrusted capital reach the poor and policy beneficiaries in the whole province. In the coming time, we will continue to pay attention to and improve the quality of the network of savings and loan groups to continue to create higher efficiency for policy credit activities...
