Promoting the effectiveness of people's credit funds

Ms. Nhung and her husband expanded their oil pressing facility thanks to a loan from Ho Xa People's Credit Fund - Photo: NP

The oil pressing facility in Hien Dung village, Vinh Hoa commune, Vinh Linh district of Ms. Nguyen Thi My Nhung's family (born in 1984) is operating at full capacity these days to serve the demand for pressing peanut and sesame oil of local and foreign people. Realizing the economic potential of this profession for a long time, but due to lack of capital, the couple had hesitated to open the facility in the past.

In 2019, through the introduction of an acquaintance, Ms. Nhung learned about and boldly borrowed capital for production from Ho Xa People's Credit Fund. “My family's situation was very difficult before. At first, I only dared to borrow 150 million VND from Ho Xa People's Credit Fund to open a small oil pressing facility. Later, when the business was favorable, I increased the loan amount to several hundred million VND to expand the scale and open a livestock farm. The loan procedures and disbursement were quick and convenient, helping us not to have to travel much, and the interest rate was also suitable.

Thanks to the timely capital, my husband and I have more conditions to buy machinery and equipment, developing the family economy," said Ms. Nhung. With timely capital support, up to now, Ms. Nhung's facility has a total of 1 milling machine, 2 presses, and 4 oil filters. In addition, she also has a livestock farm with 300 pigs and a wedding theater business. From the above economic models, her family has a revenue of nearly 200 million VND/year, creating jobs for many local workers.

Ms. Nhung's family is just one of many families that have invested effectively and their lives have improved significantly thanks to borrowing capital from Ho Xa People's Credit Fund. Considered one of the most effective funds, the fund now has over 4,000 members with a total operating capital of VND318 billion, and outstanding loans of nearly VND253 billion.

Ho Xa People's Credit Fund always meets the demand for loans with the main purpose of lending in the fields of trade, services, construction, and consumption for members and people in Ho Xa town and 3 communes of Vinh Long , Vinh Hoa, and Trung Nam.

Chairwoman of the Board of Directors of Ho Xa People's Credit Fund Tran Thi Hai Van said: "With the motto of mutual assistance, support, association, and creating conditions for members to develop together, the unit always closely follows the fields and business lines of localities to invest in credit, promptly meeting the capital needs of customers. We also simultaneously implement solutions for safe credit growth, effective investment, and strict control of areas with potential risks."

Supporting loans for members, residents in Ward 1, Ward 2 and the city's veteran association, in recent times, Truong Son People's Credit Fund, located at 41 Che Lan Vien, Dong Ha City, has promptly met the capital needs of members, prioritizing credit investment for production, business, creating products and goods, attracting labor, increasing income, contributing to the socio-economic development of the locality.

At the same time, the fund coordinates with the government and relevant agencies to create all favorable conditions in terms of administrative procedures as well as time for the fastest loan application process for the people. Thanks to this source of capital, many households have the conditions to apply new production models, create jobs, and provide stable income.

According to statistics, up to now, the total outstanding debt of the fund has reached over 100 billion VND. Notably, local lending activities have not generated bad debts, the bad debt ratio is almost zero. When there is idle capital, many households deposit it into the fund to support other households with capital to invest in production development and improve their lives. Thanks to that, the operating capital, mobilized capital, and outstanding loans of the following year are all higher than the previous year.

Chairwoman of the Board of Directors of Truong Son People's Credit Fund Nguyen Thi Than affirmed: "Although the local credit institution model has a small scale of operation and limited capital, the unit always accompanies the locality in restructuring agriculture , sustainable poverty reduction, and building new rural areas according to the policies of the Party and the State. In particular, the rights and lives of members are increasingly improved."

The province currently has 11 people's credit funds with 19,949 members. The total operating capital reaches nearly 1,700 billion VND, the total mobilized capital reaches more than 1.5 billion VND and the total outstanding loan balance reaches 1.3 billion VND. In order to create conditions to better serve the needs of borrowing and saving, and to gain the trust of members and customers, the fund system constantly innovates its service style, enhances credit activities...

Members and customers when coming to deposit money and borrow capital at the funds are always facilitated and resolved promptly, loan procedures are quick and simple, loan interest rates are guaranteed to be equal to those of commercial banks in the area at the same time. Thanks to that, the number of customers participating in depositing money and borrowing capital is maintained and developed, the amount of money mobilized and deposited at the funds is increasing. In recent years, thousands of households in localities in the province have had access to loans from people's credit funds to invest in production and business development.

Vice Chairman of the Quang Tri Province Cooperative Union Nguyen Duc Thuan assessed that the people's credit fund is the most effective model among cooperatives in the province, supported by the majority of the people. Thereby contributing to poverty reduction, especially helping to significantly limit the situation of usury in rural areas. This is considered one of the open directions to solve capital difficulties, promote socio-economic development, and improve people's lives.

“With dynamism, creativity, and quick procedures, the operation of people's credit funds has increasingly created trust and prestige with members, attracting customers. The fund system is an effective loan support channel for members, contributing positively to the economic and labor restructuring, creating jobs for local people, sustainable poverty reduction, limiting illegal credit lending, stabilizing order, and ensuring social security,” said Mr. Thuan.

Nam Phuong

Source: https://baoquangtri.vn/phat-huy-hieu-qua-nguon-quy-tin-dung-nhan-dan-194158.htm