In recent years, the system of people's credit funds (PCFs) in the province has confirmed its role in promoting economic development in the locality.
The capital mobilization of deposits in PCFs from population, economic organizations... increased rapidly. This showed that PCFs promoted their capital mobilization and disbursement for loans, helped farmers to invest efficiently and step by step improved the quality and efficiency of loan capital. Bui Thi Phi Yen, Director of Di An town PCF, said that the fund provided the best conditions for people to get loans for production expansion, industry development, thereby creating jobs for local laborers. To help people use the loan efficiently, the fund created favorable conditions for customers in terms of credit term and flexible repayment time, simplified loan procedures, offered more incentives in interest rates on deposits and loans...
Customers at An Thanh commune people's credit fund (Thuan An Town).
Nguyen Hoa Thanh, one of many households borrowing money at Di An town PCF, said that in previous years, his family wanted to expand their business of construction materials. Being advised and instructed by Di An town PCF staff, he borrowed several hundred millions VND to open a small shop. Thanks to this loan, his family's income grew and stable. From a small retail shop, at present he owns a business with investment capital up to billions VND. Mr. Thanh said that PCF was an effective channel and suitable for people like him.
An Thanh commune PCF (Thuan An Town) is also one of the leading channels for investment of local people. Established in 1994, An Thanh commune PCF has been developing stably, safely and efficiently. The annual growth rate of the fund is in line with the size of operation and characteristics of local socio-economic development. Vo Minh Chanh, Directors’ Board Chairman of An Thanh commune PCF, said that the fund took the initiative to come up with solutions to overcome difficulties, such as considering the quality of credit as a decisive factor to the quality of activities, regularly surveying, evaluating, examining before, during, and after loan disbursement. In the last year, total mobilized capital of the fund reached VND428.385 billion, an increase of VND22.561 billion compared to the previous year, accounting for 89.47% of total capital. In the first four months of 2018, total capital of the fund reached nearly VND461.286 billion; total outstanding loan was VND253.419 billion.
An Thanh PCF has created conditions for poor members without collateral to get loans for home-based business development. In addition, the fund also grants loan without collateral but with sponsor of socio-political organizations and agencies to enhance prestige and create the bond between members and their organization. Since then, the fund attracted more members.
It can be seen that the system of PCFs in the province has been promoting the efficiency of lending, meeting loan demands for business and life.
There are currently 10 PCFs with nearly 22,000 members in the province, with total capital of VND1,673 trillion and outstanding loans of VND840.4 billion. In recent year, PCFs provided more than 10,000 loans for members, limiting local high-interest loans. Average income of members is from VND10-12 million/person/month.
Reported by Thoai Phuong – Translated by Ngoc Huynh
