After being granted a VND 40 million for building a house from the preferential loan program of the Vietnam Bank for Social Policies, Lò Thị Hiền, from Púng Giắt 2 hamlet, Mường Mương commune, Mường Chà district, started saving through the savings and loan group. Hiền, who stays at home to take care of her young children while her husband works to support their family of five, finds life difficult. However, after the group leader explained the benefits of saving through the group every month, she enthusiastically joined.

Hiền shared: “Although our economic conditions are not very good, participating in saving through the group is not too burdensome because the monthly savings amount is small, and the saving level is in accordance with the group’s operating rules. Moreover, it is convenient because the savings are made through the group leader, along with monthly interest payments, without needing to go to the bank or to the social transaction point. Up to now, my family has paid off the debt, and the amount paid off from the savings is VND 10 million.”

The savings and loan group in Sảo hamlet, Quài Cang commune, Tuần Giáo district, currently has 54 members. When the program to mobilize savings through the group was launched, the group discussed and agreed to implement it, with each member saving based on their family’s conditions. Each month, all members contribute, ranging from VND 20,000 to VND 200,000 - 1 million. As a result, the members now have a savings fund, which they can use for paying interest or principal during difficult times. To date, 100% of members participate in saving, with a total savings balance of over VND 177 million.

In 2024, Lò Thị Điện, from Sảo hamlet, Quài Cang commune, Tuần Giáo district, borrowed VND 100 million from the branch of the Vietnam Bank for Social Policies in Tuần Giáo district to develop livestock. Not only has she fully paid her monthly interest on time, but she has also repaid VND 20 million of the principal.

Điện said: “Right after receiving the loan, I also participated in saving through the group. The amount saved each time is not fixed; some months I save VND 500,000 or more, and some months it is VND 200,000. As of March, I have saved over VND 10 million. Along with the interest from livestock development, I have repaid part of the loan. If my livestock business goes well, I will increase the amount I save to soon pay off more of the principal.”

The initiative to mobilize savings through the savings and loan groups was first implemented by the Vietnam Bank for Social Policies in 2009. The savings are voluntary, with the amounts varying according to each group’s rules, all of which are publicly disclosed and transparent.

To improve the effectiveness of mobilizing savings through the savings and loan groups, the chapter of the Vietnam Bank for Social Policies in Điện Biên province has organized training sessions to guide and enhance the responsibility and capacity of staff in charge of authorizing organizations at the commune level, and the management committees of the savings and loan groups. They have instructed transaction offices to collaborate with authorized organizations and group leaders to promote the benefits and importance of the program during monthly transactions, training sessions, and community meetings, helping people form the habit of saving to establish their own capital and become accustomed to people’s credit activities.

Lò Thị Đáo, leader of the savings and loan group in Sảo hamlet, Quài Cang commune, explained that initially, when people first joined the group, they were puzzled about saving when they already had to borrow money. However, after being explained the significance and benefits of saving, they understood that even a small monthly contribution could help form a habit of accumulating money, which could then be used to gradually repay the principal, thus relieving the burden when the loan is due. Moreover, with the savings, in times of difficulty or emergencies, members can request the group leader to deduct from it to pay interest. Once they understood this, all the members agreed to participate in saving.

Currently, the province has 2,169 savings and loan groups. According to statistics from the chapter of the Vietnam Bank for Social Policies in Điện Biên province, 100% of the groups now have a balance, with a total savings amount of over VND 87.5 billion, an increase of more than VND 7.1 billion compared to the end of 2024. From these savings, not only do customers have money set aside to repay debts and prepare for risks, but the bank also gains additional lending capital, allowing many poor households and other policy beneficiaries to access preferential loans for production and business, thus improving their living conditions and contributing to social welfare in the province.