People Credit Funds enhance lending, support members to expand production and business

Over the first two quarters of 2022 with many difficulties, the 10 People's Credit Funds in the province made may efforts to actively implement solutions, basic goals, especially credit growth was quite high, thereby creating favorable conditions for members to maintain and expand production and business.

Appraisal and loan granting is quickly processed helping members to seize production and business opportunities. In photo:  Borrowers at An Thanh People's Credit Fund.

Membership development

Nguyen Thi Thuy Nga, Director of An Thanh People's Credit Fund, said that in order to stimulate credit growth, one of the important solutions is to constantly develop members. In all operating periods, An Thanh People's Credit Fund focused on investing in material facilities, actively improving working style of staff, number of members kept growing. During the first eight months of 2022, the fund attracted 289 new members, bringing the total number of members to 4,283, an increase of 7.24% compared to the end of 2021.

Besides, An Thanh People's Credit Fund also effectively maintained efficiently operations of the credit committee. Based on regulations, charters and guiding documents, credit officers gathered loan applications, appraised, examined and evaluated production business plans and collateral, on that basis submitted to Board of Directors for loan approval. In order to assist members, in addition to minimizing necessary procedures, An Thanh People's Credit Fund also flexibly adjusted lending interest rates in accordance with the State Bank of Vietnam's regulations from time to time, and at the same time, publicized interest rate for everyone to know. As a result, basic indicators of An Thanh People's Credit Fund achieved good growths. In which, total capital reached 597.2 billion VND, total deposits reached 532.5 billion VND, outstanding loans reached 350.3 billion VND, reaching 106.72% of the plan in 2022.

Also, in the trend of flexible management, Nguyen Thi Linh Giang, Director of Phuoc Hoa People's Credit Fund in Phu Giao district, said that with characteristics of an area having many agriculture-based communes, financial potential was still limited, thus the fund made investments according to local socio-economic development programs and plans, especially giving priority to loans for agricultural and rural development and new rural construction. Accumulated to the end of August 2022, Phuoc Hoa People's Credit Fund approved and granted loans to nearly 1,153 members with a total loan turnover of 384.4 billion VND, up 25% compared to the same period in 2021. The members gained opportunities to invest in equipment for production and business, contributing to creating jobs, increasing people's incomes, stimulating socio-economic development, minimizing loan sharks in the locality.

To provide timely support

Le The Quang, owner of Anh Kiet clean bean sprout production facility (An Thanh ward, Thuan An city) said that three years ago he had started growing clean bean sprouts at home. “Initially, the amount of products sold was not high due to low investment capital, then when we had more customers, we needed capital to purchase more machinery and got help from An Thanh People's Credit Fund. The appraisal and settlement of 600 million VND capital was done very fast, creating a good chance for investment and development of production and business”, said Le The Quang.

At present, on average, Anh Kiet factory produces more than 2 tons of clean bean sprouts every day, their products are not only consumed strongly in the locality but also trusted by many consumers in surrounding areas. The profit earned is enough to cover borrowing costs, pay workers' salaries, and create stable incomes for many workers in the ward.

Similarly, Doi Thi Hoat, who lives in Hamlet 5, Tan Long Commune, Phu Giao District, received a loan of 500 million VND from Phuoc Hoa People's Credit Fund to invest in pig farming. From that loan, after three years, her family quickly rose to become one of effective pig farming households and gain a very stable income. Nguyen Thi Linh Giang said that in order to help members but still increase loan turnover, in the coming time, Phuoc Hoa People's Credit Fund would continue to stick to its goals and socio-economic development orientations of banking industry and the locality to lend loans to the right members, actively regulate capital sources to meet the demand.

According to assessment of the State Bank - Binh Duong branch, over the first 6 months of 2022, activities of People's Credit Funds in the province were quite good. In particular, the management, administration and control were strictly performed, basic indicators all grew well, 10 People's Credit Funds in the province were profitable, bad debt ratios were within the allowable limit. In the coming time, the State Bank - Binh Duong will continue to coordinate with local administrations to monitor, inspect and supervise operations to detect and promptly handle violations and problems; review, classify and consolidate People's Credit Funds in the new situation. In addition, People's Credit Funds need to strictly comply with regulations and laws, improve the capabilities of governance and administration, ensure safe and effective operations, and contribute more to poverty reduction, ensure social welfare, and build new rural areas.

Reported by Thanh Hong - Translated by Ngoc Huynh

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