Providing low-interest installment loans through groups and the Women's Union has helped women in three disadvantaged communes, Phuoc The, Vinh Hao and Phu Lac (Tuy Phong district), have more opportunities to develop their household economy...
Ms. Tran Thi Tham in village 3, Phuoc The commune, has a family of 6 members, of which her eldest child is in college, 3 people work at sea and have other jobs, so their income is unstable. When she heard that Phuoc The People's Credit Fund (QTDND) offered installment loans through the Women's Group, she contacted to borrow 30 million VND for the purpose of buying and selling seafood (fish, squid). Ms. Tham said: Every day, the loan money is invested in buying fish and squid from fishermen and then selling them at the market to earn a profit of a few hundred thousand VND, while the principal and interest are only 90,000 VND/day, so it is quite easy to pay. Thanks to this source of capital, my economy is stable, and I have some left over to pay for my children to go to college.
Ms. Ha Thi Thanh Duyen in hamlet 8, Vinh Hai village, Vinh Hao commune borrowed 30 million VND for the purpose of buying fishing nets. Thanks to this source of capital, the family has more income, helping the family economy to be more stable... Ms. Le Thi Sot in hamlet 4, Phu Dien village, Phu Lac commune specializes in making bamboo poles, so during the harvest season, she often has to borrow money from outside with high interest rates. When the village Women's Group informed her that QTDND offers installment loans with an interest rate of only 8%/year, she borrowed 20 million VND for the purpose of investing in onion seeds. Thanks to this loan, her family has reduced the pressure of paying high interest rates outside...
Mr. Nguyen Hoi - Chairman of the Board of Directors of Phuoc The People's Credit Fund, said: In order for poor workers to have convenient access to loans, limit usury in rural areas, and join hands with local Party committees and authorities to build new rural areas, Phuoc The People's Credit Fund boldly applied the effective installment loan model for low-income people. From the pilot organization of 2 groups/40 members/400 million VND, the model has now been expanded to 61 groups/1,200 members and has disbursed more than 25 billion VND. Phuoc The People's Credit Fund was established in 1997, currently has a total operating capital of more than 130 billion VND, equity capital of 12 billion VND. Of which, charter capital is 7 billion, mobilized capital is 120 billion VND and outstanding loans are 130 billion VND, bad debt is 0.5%. Operating in 3 adjacent communes of Tuy Phong district including Phuoc The commune (island commune), Vinh Hao commune (mountainous commune) and Phu Lac commune (Cham ethnic commune), the operating area is far away, the population is scattered, people's lives are still difficult, poor workers, without collateral, have difficulty accessing loans, when needing capital for production, have to borrow at high interest rates.
Grasping the local situation, QTDND Phuoc The coordinated with the Women's Union of 3 communes, Phuoc The, Vinh Hao, Phu Lac, to establish an installment loan group of 15-30 people/group, through the local government. QTDND Phuoc The and the Women's Union of the commune reviewed the loan application of each group member (minimum 10 million VND/person, maximum 30 million VND/person), established procedures for disbursement directly to the borrower within 3 days. After the members borrowed capital, the group leader directly collected the money from the members every day to submit to QTDND Phuoc The (each group opened a savings book). At the end of the month, together with the Women's Union of the commune and the group leader, withdrew the savings book to pay the debt to each member in the group. Through the above lending method, the poor can easily access the capital of QTDND, easily repay the principal. The model is approved by the people, supported by the government, and spreads the risks in lending. From the above method, the number of members participating in the fund has increased, up to now QTDND has over 3,000 members, credit growth is increasing, economic benefits are brought to both the people and QTDND...
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