Ninh Hoa People's Credit Fund: An effective capital channel in rural areas

Many households get loans to do business.

Located on National Highway 1, in Ninh Quang Commune (Ninh Hoa Town), Mr. Vo Cong Duy's auto repair and maintenance shop is always bustling with customers. When we visited, Mr. Duy was checking the electrical system of a 4-seater car, while three other cars were also waiting for their turn to be repaired. Mr. Duy shared: Previously, the shop was quite small, not having enough space and equipment to repair many types of cars at the same time. In early 2025, thanks to accessing capital from the Ninh Hoa People's Credit Fund of 400 million VND, he was able to expand the shop and import more goods and equipment. Each month, he pays nearly 10 million VND in principal and interest. The capital has helped him invest in business, have a stable income for his family, create jobs for some local workers and repay his debts on time every month.

Mr. Vo Cong Duy checks and repairs cars for customers.

In Thach Thanh village, Ninh Quang commune, in a rice warehouse of nearly 500 square meters, Ms. Luu Thi Minh Huyen is counting dozens of bags of goods for employees to load onto trucks to deliver to customers. Ms. Huyen often buys rice from communes in the area and some places in Ninh Thuan province to mill and supply rice to agents in the area. To have more capital to import goods for the last crop and cover the cost of repairing her son's house, she borrowed more than 700 million VND from the People's Credit Fund. "The loan procedures were resolved quickly and promptly by the fund, thanks to which I used the capital very effectively," Ms. Huyen shared.

Ms. Luu Thi Minh Hien counts rice for staff to load onto the truck and deliver to customers.

These are just two of many households that have accessed capital from the Ninh Hoa People's Credit Fund in recent times. Established in 2016, the fund operates in Ninh Quang commune and Ninh Hiep ward. Customers are mainly farmers, small business households, and small traders who need to develop their family economy and serve their daily lives. Capital from the fund is considered an effective credit channel, helping people limit access to "black credit" forms of borrowing.

Efficient operation, capital safety

According to the report of Ninh Hoa People's Credit Fund, as of the end of March, the fund's total operating capital reached more than VND 111.5 billion, an increase of VND 3 billion (2.8%) compared to the beginning of the year and reaching 68.95% of the plan for term II (2022 - 2027). Of which, the charter capital of members reached more than VND 10 billion (accounting for 9.1% of total capital); mobilized capital was more than VND 91 billion, an increase of nearly VND 1.3 billion and reaching 82.9% of the plan for 2025; loan capital from the Cooperative Bank was more than VND 5 billion.

Customers transact at Ninh Hoa People's Credit Fund.

By the end of March, outstanding loans reached more than VND100 billion, an increase of VND1.35 billion compared to the beginning of the year, reaching 93.58% of the 2025 plan and 77.44% of the plan for term II. Of which, medium and long-term loans accounted for 34%, short-term loans accounted for 66%. Specifically, loans for agricultural production were more than VND15.3 billion (15.3% of total outstanding loans); loans for trade and services were VND39.39 billion (39.34%); consumer loans were more than VND13.56 billion (13.55%); the rest were other industries (31.81%).

Mr. Nguyen Tan Luc - Chairman of the Board of Directors of Ninh Hoa People's Credit Fund said: "The fund's growth targets always closely follow the progress of the set plan. All safety ratios for capital operations comply with the regulations of the State Bank. Payments of deposits to customers are made fully and promptly; interest rates are adjusted in accordance with the market and capital mobilization capacity, not exceeding the ceiling. The fund also does not incur overdue debt. In particular, the Law on Credit Institutions, effective from July 1, 2024, stipulates that the Board of Directors is responsible for deciding on the admission of members and synthesizing the admission list during the reporting period at the Members' Congress. This regulation has removed many shortcomings that have existed in recent years, facilitating the fund's operations, helping people access official credit capital faster when needed".

Currently, Ninh Hoa People's Credit Fund has 1,411 members, reaching 62.7% of the plan for the second term. In the first quarter of 2025 alone, the fund has admitted 41 new members. This is one of the outstanding indicators of the fund in recent times, clearly demonstrating the growth and effective operation of Ninh Hoa People's Credit Fund in accompanying people in economic development and stabilizing life in rural areas.

MAI HOANG

Source: https://baokhanhhoa.vn/kinh-te/tai-chinh-ngan-hang/202505/quy-tin-dung-nhan-dan-ninh-hoa-kenh-dan-von-hieu-qua-o-vung-nong-thon-132218e/