The enlightened inter-generation supporting club

Established since 2016, the model of inter-generation supporting club of Di An city Association of Elderly People has been duplicated across 7 wards to account for membership contribution of over VND 1.6 billion – a capital resource rich enough to disburse annual loans to members for their household business development and escaping poverty.

The clubs of stronghold

Talking to us, Pham Thi Hue, Deputy Chairwoman of Di An city Association of Elderly People, elaborated the figures of about 900 members of adverse economic background due to unstable employment amd lack of loans to develop household businesses among 10,000 members. The inter-generation supporting club has, on understanding the family backgrounds of its members, helped hundreds of members in adverse situations get the loans to develop household businesses of vegetable cultivation, vehicle repair, department stores, etc. for stable capita income of about VND 5-7 million a month. We can put it that the inter-generation supporting club has been highlighted among elderly movements of Di An city in recent years.

The loans of inter-generation supporting club have enabled families in Tan Dong Hiep ward to construct their own yielding businesses

It is progressive that only 3 clubs of less than 200 members had been established in 3 wards of the city in 2016 to offer loans from the contribution of less than VND 200 million; now that all 7 wards of the city have their own club of over 800 members to offer a loan resource of up to VND 1.6 billion. According to Hue, the regular and effective propaganda was the key to sustainably develop the clubs. Concurrently, not only do club leaders manage the loan resources in optimal manner, they also explain to members the purpose of club participation as well as the obvious examples of income increment among members. Such elaboration also included the expenses for healthcare of members, membership benefits on holidays, and most of all replenishment of the annual loan resources from loan interests. The clubs also offer volunteers of home healthcare to protect rightful membership benefits.

For such ways around, members’ next-of-kin are offered the loans as well as long as they are in the membership which requires contribution of only VND 500,000 to 1 million a person, thus, some had contributed up to millions mainly to help others. That Le Thi Kim Thanh of Tan Dong Hiep ward contributing VND 50 million and Le Van Trung of Di An ward VND 23 million is so vivid an example. Hue affirmed that the clubs are responsible for reviewing and consideration the cases of members to disburse VND 2-20 million a person in a year, after which if maturity is ensured, the club would consider to continue disbursing, regarding the loans and loan rotation.

The beneficial circle

Inter-generation supporting club of Tan Dong Hiep ward of currently more than 250 members of a total capital resource of more than VND 600 million is the strongest club in 7 wards. At the club, not only the elderly but also many young members are facilitated to borrow loans for economic development.

Pham Van Hung in Dong Thanh neighborhood, currently the owner of a motorcycle washing shop with a stable income, shared that his family used to be in adverse situation without any assets to pledge nor to borrow from the banks let alone working capital. After seeing his parents joining the club with humble contribution for a higher loan with low interest rate, he joined.

“I myself pay both interest and principal on time, so I get a loan every year with an increase in loan amount year after year. Without the capital resource, I would not have been able to buy machinery to open such a shop. I could have only worked for others. Currently, my income from washing vehicles is no less than VND 10 million a month,” he said.

Various families in Tan Dong Hiep ward, based on the loans, have engaged in meaningful economic activities, like Nguyen Van Thanh who used the loans to purchase a motorbike for his wife to work at a factory, Bui Thi Hoa to open a breakfast shop, Nguyen Thi Sen sell soft drinks, or Huynh Thi Truc Mai to grow hydroponic vegetables on yearly rotating loans.

Pham Thi Hue said that most of the clubs in the city's 7 wards eyed effective use of the humble loans for the right purposes to helping hundreds of elderly people and their descendants to be free from problems involved in borrowing money at usury rates, helping them stabilize their lives, and ensuring security, order and social safety in the locality. The model will be strongly developed by the city Association of Elderly People for the time to come.

Reported by Quang Tam – Pham An – Translated by Vi Bao