With a network of more than 58,000 Loan groups connecting over 910,000 members and total outstanding loans exceeding VND 216 trillion, lending through Loan groups continues to serve as an important credit channel for Agribank, bringing financing closer to individuals, households and customers in agricultural and rural areas.

As of the end of July 2026, lending through Loan groups had been widely implemented across numerous Agribank branches throughout the system. The scale of the model demonstrates its increasingly important role in connecting Agribank with people at the local level, particularly in areas where production and business activities are closely linked to agriculture, rural communities and household economic activities.

Through Loan groups and local organisations involved in their management, people’s financing needs can be more accurately identified; credit policies can be communicated in a timely manner; and the borrowing process and use of funds can be guided and monitored in line with local conditions. This provides people with more convenient access to bank financing while enabling Agribank to strengthen the management and control of loans at the local level.

The Loan group model is implemented with the participation of various local organisations, including the Vietnam Farmers’ Union, the Vietnam Women’s Union, local authorities, trade unions and other relevant organisations. This coordination helps broaden access to credit in a manner suited to the characteristics of each locality and customer group.

Alongside expanding access to financing, Agribank continues to place strong emphasis on credit quality under the Loan group model. As of the end of July 2026, the non-performing loan ratio for lending through Loan groups across the system remained low, at approximately 0.4%, and showed an improving trend compared with the end of 2025.

This result demonstrates the effectiveness of combining lending activities with coordination and supervision at the local level. With the bank, Loan group leaders and managing organisations working together to connect with and support borrowers, financing needs, the use of funds and the fulfilment of repayment obligations can be monitored more closely in line with the actual production and business activities of each member.

In many localities, outstanding loans through Loan groups continued to record positive growth, demonstrating the effectiveness of the model in channelling credit to local people.

A key strength of the Loan group model lies in its ability to stay close to local communities and establish a direct connection between Agribank and the people. Through the network of Loan groups at the local level, financing needs for production and business activities can be more accurately identified, while people have greater opportunities to learn about credit policies and receive support throughout the borrowing process.

From individual Loan groups in local communities to a nationwide network of more than 58,000 groups, the model is helping build a bridge between Agribank, associations, local authorities and the people. Through this connection, bank financing is brought closer to actual needs, accompanying customers in their production and business activities.

By continuing to enhance the effectiveness of the Loan group model, Agribank is not only helping broaden access to formal credit but also strengthening its engagement with customers at the local level, thereby further affirming its key role in financing the development of agriculture, farmers and rural areas.

Kylie Nguyen