Lending trust funds through socio-political organizations proves effectiveness

In recent times, socio-political organizations in the province have performed well in transferring social policy credit funds to eligible members and union members in need of loans. This approach has contributed to effectively implementing national target programs on sustainable poverty reduction, new rural construction, and ensuring social security in the locality.

Vietnam Bank for Social Policies, Binh Duong branch, carries out transactions in Phu My ward (Thu Dau Mot city)

 Assume the entrusted responsibilities

To effectively implement the entrusted contents, currently, Binh Duong branch of Vietnam Bank for Social Policies is entrusting its funds to organizations such as: Veterans Association, Farmers' Union, Women's Union and Youth Union. In the first 7 months of 2024, the total outstanding policy credit of these organizations was VND4,727 billion, accounting for 99.58% of the total outstanding debt.

To effectively implement the entrusted content, the entrusted political and social organizations have closely coordinated with Binh Duong branch of Vietnam Bank for Social Policies to actively introduce the bank's loan packages to those who need to use loan capital to invest in production and business to develop their family income. Thanks to these loans, many households have escaped poverty. An example is the couple Le Xuan Thuy (in Hamlet 1B, Phuoc Hoa Commune, Phu Giao District). Due to a lack of capital for production, the family encountered many difficulties. In 2019, with the support of the Farmers' Union, his family managed to borrow VND50 million from the Near-Poor Household Loan Program of Phu Giao District Social Policy Bank in order to invest in raising cows.

His family used their capital to buy two cows. After working hard and saving, Mr. Thuy's family has lifted themselves out of poverty and stabilized their lives. Now his family has more than 10 cows.

Mr. Vo Van Duc, Director of Vietnam Bank for Social Policies, Binh Duong Branch, said that in order to fulfill its tasks, Vietnam Bank for Social Policies, Binh Duong Branch always closely coordinates with local authorities in consolidating and improving the quality of social credit activities; grasps the borrowers' capital use; arranges and assigns specialized staff to monitor the trust funds, ensuring stability and continuity; promotes the application of information technology in monitoring trust activities. At the same time, the Vietnam Bank for Social Policies, Binh Duong branch, regularly provides training of entrusting operations for officers of socio-political organizations and the Management Board of savings and loan groups to improve the capacity of officers participating in trust activities...

Effectiveness of the entrusting method

In order to help the poor and policy beneficiaries access the Government's preferential credit policies conveniently, reduce costs, implement democratic and public regulations and strengthen the supervision of local authorities and socio-political organizations in implementing policy credit, the system of Social Policy Bank in the province has organized transactions at communes, wards and towns to serve the poor and policy beneficiaries.

Transaction activities at the commune level are the way the Social Policy Bank organizes transactions with customers at transaction points located at the People's Committee at the commune level. Currently, in 89/91 communes, wards and towns, 89 transaction locations are organized, and commune transaction sessions are held on a fixed day every month, at least once a month (including Saturday and Sunday). At the commune transaction point, transactions of disbursement, debt collection, interest collection, savings collection and disbursement are carried out; documents on lending operations, debt settlement operations and other related documents are received; information is received and processed for customer feedback and suggestions; explanations, instructions and propaganda are provided to borrowers...

As of July 31, 2024, the entrusted socio-political organizations are managing 1,727 savings and loan groups established in all areas and hamlets in the province, with 84,203 members borrowing VND 4,727 billion. Average/group 2.74 billion VND. The activities of receiving trust funds from the system of Social Policy Bank have created conditions for socio-political organizations to gather forces, increase the number of members, consolidate and improve both quantity and quality; received the support of local Party committees, authorities and people, creating favorable conditions during the implementation process. This entrusting method has promoted the strengths of these associations, especially in information, propaganda, mobilization, supervision and social criticism in the implementation of the Party and State's policies and laws.

“Transaction activities in the commune are increasingly orderly and effective, creating convenience for the poor and policy beneficiaries to be served accurately and conveniently as at headquarters of the Bank for Social Policies in the area. Through activities at transaction points in communes, access to policy credit services has been enhanced, which is a step forward in administrative procedure reform," said Mr. Vo Van Duc, Director of the Vietnam Bank for Social Policies, Binh Duong branch.

 Reported by Tuong Vy - Translated by Ngoc Huynh