People's credit funds actively contribute to poverty reduction

In recent years, the People's Credit Fund (PCF) system in the province has been affirming its role in promoting access to financial services, meeting the needs of economic development, creating jobs on the spot, and increasing income for people in the province. With the motto of being close to the people for development, PCFs in the province have breathed new life into the collective economic sector of the province, helping many households gradually rise up in economic development.

From the loan, Mr. Phan Viet Tan's family (residing in Hamlet 7, Truong Mit Commune) has the conditions to develop the economy.

"Midwife" for farmers

There are currently 37 People's Credit Funds in Tay Ninh province, with more than 80,000 members. With the goal of "Supporting, assisting and developing the member economy", over the past time, the People's Credit Fund system in the province has constantly innovated, improved quality, and met the borrowing needs of customers. With reasonable interest rates, borrowing and interest payments are carried out quickly and easily by the Fund's staff. Loans from People's Credit Funds have supported thousands of economic models, contributing positively to poverty reduction, economic development, and new rural construction in localities.

Mr. Phan Viet Tan's family, residing in Hamlet 7, Truong Mit Commune, borrowed 1 billion VND in 2019 to grow 1 hectare of durian. After nearly 6 years, his family's durian has grown well and has yielded 2 harvests with relatively stable profits.

“Durian is a crop that requires a large initial investment, and careful care and fertilization. Therefore, farmers really need capital to invest in caring for the trees to grow well. Thanks to the low-interest loan from the Bau Don People's Credit Fund, I was able to invest in fertilizer and hire workers to take care of the trees. After only 4 years, the trees bore fruit and had good yields. My family has a more stable income,” said Mr. Tan.

Also borrowing capital from the People's Credit Fund to grow durian, currently, the family of Ms. Nguyen Thi Phuong Anh, residing in Thuan An hamlet, Truong Mit commune, has had the conditions to expand the cultivation area. Ms. Phuong Anh said: "My family has been growing durian for 6 years now, the investment cost is quite high, while the capital recovery time is slow. I borrowed an additional 1.2 billion VND. The loan has helped my family cover the cost of taking care of durian, buying more land to expand the cultivation area. After deducting costs, each hectare of durian yields a profit of about 1 billion VND/crop".

Ms. Dang Thi Mong Thu - Chairwoman of the Board of Directors of Bau Don People's Credit Fund (Truong Mit Commune, Tay Ninh Province), said: During its operation, the Fund has always focused on improving working methods, enthusiasm, friendliness and engagement with customers. Currently, Bau Don People's Credit Fund has reserves of about 51 billion VND to meet people's borrowing needs in the coming time.

Efficient and safe operation

People's credit funds contribute significantly to pushing back "black credit" and developing local socio-economy.

In addition to lending for the right purposes, promoting efficiency, limiting the situation of "black credit", helping people build effective economic models, the People's Credit Funds in the province also promote initiative and creativity in business activities, flexibility in interest rates, good risk management, and preventing bad debts.

QTDND Ward 3 (Tan Ninh Ward) strictly implements the internal agreement on combating negative credit practices, applies many measures to reform procedures, ensures quickness, limits travel, timely meets capital needs for production and business, and ensures other legitimate rights of members. In 2024 alone, the Fund mobilized 165 billion VND, bringing the total capital to 193 billion VND. For lending, the outstanding debt as of December 31, 2024 reached 162 billion VND.

Ms. Tran Ngoc Diep - Chairman of the Board of Directors of the People's Credit Fund of Ward 3, said: The Fund focuses on credit quality, strengthening and supporting members so that they can develop further. Members who receive capital support all use it for the right purpose.

Not only is it a reliable address for people to deposit money and borrow capital, QTDND also contributes to promoting the development of the collective economic sector. The Provincial Cooperative Union sets a goal that in 2025 and the following years, 100% of QTDND will be organized, operate according to the Law and operate profitably.

To realize the above objectives, the Provincial Cooperative Union is focusing on consolidating, rectifying and improving the level of safety and efficiency, ensuring that the People's Credit Funds operate on the principles of voluntariness, autonomy and self-responsibility; focusing on mobilizing capital and lending to member units, especially in rural areas, to mobilize local resources, contributing to local economic development, social security and pushing back usury and "black credit".

However, after the reorganization of commune-level administrative units, the operation of the People's Credit Funds has encountered some shortcomings: The new commune's area is 3-4 times larger, making management and supervision difficult. There are cases where several People's Credit Funds operate in the new commune, leading to overlapping areas. Therefore, lending to new customers has not been implemented.

The People's Credit Funds are in dire need of the authorities to soon provide specific guidance to promptly adjust their operating models to suit the new administrative units, ensuring locations and facilities for operations so as not to interrupt service to the people./.

Vu Nguyet

Source: https://baolongan.vn/quy-tin-dung-nhan-dan-gop-phan-tich-cuc-vao-cong-cuoc-giam-ngheo-a198838.html