Simplifying lending procedures and loan collection in VBSP

To simplify lending and loan collection procedures, over the past time, VBSP's Branch of Hòa Bình province has focused on changing savings & credit books for many thousands of households. With the utmost effort, VBSP determines to complete as scheduled. 

According to the statistics prior the book changing period, VBSP managed over 90 thousand loan books of targeted households because there are a lot of loan categories and each family has from 2 to 3 members to be given loans. For instance, one family has a father in Farmer Association and a mother in Women Union and their children borrow loans for schooling and vocation training etc., resulting in setting up each loan book for each family member.

Moreover, there are such cases as one family has two houses living in different hamlets and communes, when making two loan books, a wife gets loans in one hamlet but a husband gets loans in another hamlet, causing difficulty in management.

Mr. Vũ Đình Đoài, Deputy Director of Hoa Binh branch said the whole province has about 60 thousand households and enterprises to be entitled to borrow VBSP's loans. Each family has several loan books, bringing about an increase in many thousand books and lending becomes complicatedly and costly. To conduct book changes effectively, quickly and exactly, right from early April 2009, the whole branch has launched the emulation campaign to complete loan book changes and issue loan collection receipts. The branch established the steering board quickly and assigned tasks explicitly for each member. The branch also expects to complete book changes until July 2009.

One of the advantage of book change is to specify family owners in full charge of borrowing loans and monthly interest repayment for their families. The branch shall update and monitor information on each household via identifications on computer, creating more simplification of borrower management.

Combining several household loan books into one loan book will save time and cost maximally. Moreover, each loan book specifies loan categories, helping borrowers easily determine whether members in each household are eligible to carry on borrowing loans for consumption or business/production etc.

In the past, savings & credit groups take responsibility for interest collection and submit to the bank, resulting in wasting much time on manual calculation and even happening errors and mistakes.

In the next time, VBSP will update and handle monthly interest rates in the computer system and print loan collection receipts in each credit program and directly deliver to each household that leads to reducing time for bank cashiers and keep calculation safe.

He said that in addition to changing loan books and loan collection receipts, the branch shall simplify many kinds of loan procedures such as applications, loan requests and projects of business and production.

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