Escaping poverty by loans people's credit funds

People's Credit Fund in the province has effectively paved the way for many households to develop home-based businesses. This source of loans has been supporting many poor people in rural areas and helping them alleviate poverty and settle down.

A loan granted by People's Credit Fund helps Pham Van Lam's family invest in a construction materials store, alleviate poverty.

The springboard of the poor

Hoang Van Binh and his family, who live in Tan Long hamlet, Phu Giao district, is a poor household of the commune. With a suffering appearance, a simple honest voice, Binh confided: "My wife and I before was in extremely difficult circumstance, every day we had to get up from 1-2 a.m., worked as rubber latex tapping workers until 8-9 a.m. but the income was just over VND7 million / month. Thanks to the help from Phuoc Hoa People's Credit Fund, my wife and I were determined to change our lives, boldly borrowed a loan to develop a garden to increase income, therefore, our income has been improved very much."

The story of Binh is an example of overcoming difficulties, alleviating poverty by their hard working spirit and strong determination. After many years of being rubber latex tapping workers, the income was only enough to cover basic living expenses. In 2021, the couple boldly borrowed a loan of VND 150 million from Phuoc Hoa People's Credit Fund to develop 2ha of rubber trees within 2 years, and must return the land to the owner after that. In 2022, Binh and his wife decided to develop an additional 4ha of rubber trees within 3 years. Then, his family gained a benefit of more than VND20 million per month. Only after one year, his family almost paid off the debt, the income of two years later was their interest. After pay off the old debt, Binh loaned Phuoc Hoa People's Credit Fund VND300 million with preferential interest rates to start a business plan.

In recent years, People's Credit Fund in provincial localities has helped many people, especially poor households to rise up. For example, Pham Van Lam's family live in Phuoc Hoa commune, Phu Giao district. In the past, a small pig farm only brought enough income for the family. In 2020, the family borrowed a loan of from People's Credit Fund to open a construction materials store and has gained a turnover of 400 million / month. Income of the family increases, their lives become more stable, children in the family are well educated.  

Assessing the role and effectiveness of People's Credit Fund, local leaders said that the fund has a great role in the socio-economic development. Nguyen Van Xuan, Chairman of Phuoc Hoa commune People's Committee, said that People's Credit Fund in the area contributed to mobilizing and exploiting local capital to address people's demands for loans; thereby creating jobs and improving people's lives. In addition, People's Credit Fund makes an important contribution to the building of new rural areas in communes in particular and localities in general.

To provide timely support

Every day, at most People's Credit Fund offices in localities, there are quite a lot of people coming are instructed by officials here to follow the procedures to lend, deposit and receive money. Doan Van Huan, Chairman of of Phuoc Hoa commune People's Credit Fund, said: "The procedure to grant loans at the fund is conducted quickly in order to create favorable conditions for people to borrow loans quickly, safely and effectively. The spending process of members' loans is regularly checked, so the fund's capital has been used for the right purposes and effectively, helped hundreds of farmers increase their income and alleviate poverty…”

As of April 2022, Phuoc Hoa People's Credit Fund had more than 4,410 members, with a total capital of over VND 550 billion, total loan balance of more than VND 298 billion, the ratio of bad debts only accounted for 0.35%. Phuoc Hoa People's Credit Fund has helped people in the area to get capital to increase crop productivity and livestock farming development. As a regular and long-time customer of Phuoc Hoa People's Credit Fund, Pham Thi Tam's family in Phuoc Hoa commune has also changed their lives thanks to this loan. Tam said, in order to have a stable life like today, the family is very grateful for the timely and quick support of People's Credit Fund.

Not only Phuoc Hoa commune People's Credit Fund, other People's Credit Funds in the province has been born, offers appropriate loan interest rates, simple loan procedures have helped people expand production to earn high income. With the goal of safe business, effective investment, People's Credit Fund always stick to the socio-economic development orientation of the locality to develop appropriate plans and operation procedures in order to well implement solutions, improve people’s lives and poverty alleviation in the area.

Reported by Tien Hanh – Translated by Ngoc Huynh