The effectiveness of the Mutual Support Revolving Fund of the Farmers' Association of My Xuyen town

Members of the Mutual Support Revolving Capital Pool of the Farmers' Association of Cho Cu Hamlet, My Xuyen Town, My Xuyen District (Soc Trang) received capital. Photo: HUYNH NHU

Comrade Phan Van Toan - Chairman of the Farmers' Association of My Xuyen town said that in recent years, black credit lending activities have been very complicated with many methods. In My Xuyen town, black credit lenders often take advantage of social networks to advertise their usury behavior or post flyers advertising loans without collateral with attractive phrases such as, fast disbursement, simple procedures, only need ID card... causing many people in need of money to seek this type of loan even though the interest rate is very high. Faced with this situation, the Farmers' Association of My Xuyen town has stepped up propaganda work on the status of black credit through meetings of the le chi, association groups and established revolving capital groups to support each other, helping members access capital safely.

The group's capital contribution method is also very simple, each member will contribute a fixed amount of money according to the agreed term, this amount is rotated to members who need to borrow to develop the economy, each month the group will meet once and draw lots to give support money. Thanks to this form, it has created a stable financial source for members who need to borrow capital to invest in production and business without having to seek black credit, without worrying about the burden of debt, helping them to be proactive in production. This creates motivation for them to expand their production model and increase their income.

A typical example is Mr. Le Quang Binh - a member of the Farmers' Association of Cho Cu Hamlet, My Xuyen Town, who previously faced difficulties with capital in the process of investing in developing his family's economy, but thanks to the capital from the capital pool, he has had more conditions to do business, trade on a small scale, and improve economic efficiency.

Mr. Binh shared: “Recently, I received capital from the Mutual Support Revolving Capital Pool with the amount of 17 million VND, I gave it to my wife to use as capital for small business at the market and used a portion to pay tuition for my child who is in college. Without this source of support capital, I would have to borrow money from outside and pay high interest, the cost would increase, but with this source of support capital, I can reduce the cost.”

In addition to helping each other with capital, when participating in the group, members are also promptly updated with the policies and laws of the Party and the State, helping to raise awareness and orient economic development. At the same time, members also participate in training courses on livestock and crop farming techniques, as well as exchange and share economic experiences, supporting each other in expanding production. More importantly, the capital pooling group has contributed to building a spirit of solidarity and mutual support in the community, helping members develop a sustainable economy. Thanks to that, members participate in activities more regularly and actively respond to local movements such as: the movement to build new rural areas, the movement of the whole people uniting to build cultural life in residential areas, helping each other reduce poverty, etc.

Seeing the practical effectiveness of the model, the Farmers' Association of My Xuyen town has expanded it to hamlet branches throughout the town. Currently, the association has 5 revolving capital groups with 104 members and a monthly turnover of 40 million VND or more, helping many members access safe capital sources and avoid the trap of black credit. In addition, the capital groups also allocate funds to visit members when they are sick and give gifts on holidays and Tet.

With initial positive results, the Mutual Support Revolving Capital Pool model of the Farmers' Association of My Xuyen town is expected to spread widely, becoming an effective community financial support channel.

HUYNH NHU

Source: https://baosoctrang.org.vn/xa-hoi/202504/hieu-qua-to-hun-von-xoay-vong-tuong-tro-cua-hoi-nong-dan-thi-tran-my-xuyen-d6c5606/