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People Credit Funds to affirm its role, improve efficiency

Update: 24-05-2020 | 18:16:34

Over recent years, the People's Credit Fund (PCF) system in the province has gradually developed, strengthened its role and position of economic cooperation in fields of currency, credit, direct serving the renovation, agricultural, rural development and the people's lives improvement.

Customer conduct transactions at People's Credit Fund of An Thanh commune, Thuan An City.

 The system is expanding

Deposits at PCF system in the province from residential, economic organizations steadily increase annually, while loans decrease, accounts for only a small proportion of the total operation capital. This shows that PCFs have promoted the advantages in capital mobilization and disbursement to help farmers invest efficiently, gradually improving the quality of loans.

Currently, the province has 10 PCFs operated stably with nearly 20,000 members, total operating capital of VND 1,653 billion, outstanding loans of over VND 1,140 billion. Total turnover reached VND 172 billion, granted nearly 10,000 loans to members. Since then, it has contributed to creating funds for members to develop production and business, improve living standards, create jobs, and restrain lending money at unusual interest rate. Per capita income reached from VND 10 to 12 million / month / person.

An Thanh PCF (Thuan An City) is one of the effective channels for people in the area. Founded in 1994, this is one of the leading PCFs of the 10 PCFs across the province. An Thanh PCF has been constantly developing stably, sustainably, safely and effectively. The growth rate is in alignment with the operation scale and characteristics of the local socio-economic situation. This PCF has earned the support of majority people and the increasing trust of customers. Nguyen Thi Thuy Nga, Director of An Thanh People's Credit Fund, said that the fund proactively offers solutions to solve difficulties, such as constantly increasing financial capacity, making efforts to improve operational efficiency, and considering quality of credit work as a decisive factor in operations, regularly enhancing phases of surveying, appraising and inspecting before, during and after lending.

In addition, in order to timely support customers who are in difficulties due to the impact of Covid-19, An Thanh PCF reduced its interest rate to all outstanding loans. Accordingly, a reduction of 1% / year for monthly interest payment contracts; a reduction of 0.96% / year for short- and mid-term installment loan contracts. The duration of interest rate reduction was 2 months (April and May 2020). This solution helped members reduce difficulties caused by the Covid-19 pandemic, strengthening more customers and members loyalty; helping its operations at the present to happen normally and stably.

To stimulate local economic growth

With the support from local authorities and State Bank in management, most PCFs in the province have operated stably and efficiently, followed the principle of mutual support among members; at the same time, effectively performed production, business and service activities, improved living standards, contributing to the restriction of usury and good implementation of social security. Nguyen Hoa Thanh, one borrowers of Di An People's Credit Fund (Di An City) said: “Many years ago, my family needed to expand our construction materials business, was consulted and guided by credit official of Di An PCF. At first, I only borrowed a few hundred of million VND to open a small construction material store, but thanks to this loan, my family's economy was growing and stable. At present, it is no longer a small retail shop but a private enterprise with investment capital of billions VND”. Mr. Thanh added that this was an effective channel and suitable for private businesses.

Bui Thi Phi Yen, Director of Di An People's Credit Fund, said that Di An PCF always creates favorable conditions for people to get loans. This fund meets promptly to capital demand of people, who want to expand production, develop trades, thereby creating jobs for many local workers. Furthermore, in order for people to use the loans efficiently, this fund support customers in flexible repayment time, simplifying loan procedures, offering more incentives and preferential interest rates of deposits and loans... In 2019, total operating capital of Di An PCF was VND 164 billion, reaching 105.96% target, in which deposits accounted for VND 146 billion, 107.23%. Total outstanding loans VND 113 billion. Over the first months of 2020, the operations of this fund remained stable, capital growth was fairly high. However, total loan fell, because of the influence of the Covid-19, customers did not invest in production, consumption... "To share difficulties with members and customers, the fund has implemented the program to decrease interest rate by 1% per year for all loan members, with a duration within 3 months", Ms. Yen said.

In addition, PCF system also helped poor members who have no mortgaged assets to get loans to develop stable family economy and better their lives. The fund also granted unsecured loans with the guaranty of social political organizations, unions and agencies, aiming to raise credibility and create more bond between members with their organization. Since then, it has attracted members to their organization.

 Reported by Thoai Phuong - Translated by Ngoc Huynh

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