People's Credit Fund: Effective capital channel

In recent times, people's credit funds in Khanh Hoa province have always been an effective capital channel, both directly mobilizing idle money among the population and providing loans to serve regional production and consumption in rural areas, contributing to stabilizing production and people's living.

Phan Van Tan (in Nhu Xuan 2 village, Vinh Phuong commune, Nha Trang city) is one of the first members of Vinh Phuong People's Credit Fund since its establishment. Currently, his family is borrowing more than 100 million VND for agricultural production. His family produces 20 hectares of rice for this crop. Besides, he also provides other agricultural services such as plowing, harvesting, and transporting materials to farmer households. “Thanks to the capital of the People's Credit Fund, my family can feel secure in production and have a stable income. Each crop, after deducting costs, my family earns a profit of 10 million VND/ha. In addition, I also create regular jobs for some local workers," Tan shared. As of early 2024, Vinh Phuong People's Credit Fund has 2,236 members with a total operating capital of more than 44.4 billion VND. Total outstanding loans are more than 24 billion VND, an increase of 32.24% compared to the beginning of 2023.

People make transactions at Vinh Phuong People's Credit Fund.

Ho Thi Tram (in Ninh Hiep ward, Ninh Hoa town) is borrowing 850 million VND from Ninh Hoa People's Credit Fund to do business on construction materials. The fund's capital has been the financial fulcrum for her family's business for nearly 5 years, bringing effective revenue and creating jobs for 7 workers with a salary of 10 million VND/person/month. Nguyen Tan Luc - Chairman of the Board of Directors of Ninh Hoa People's Credit Fund said that as of the beginning of this year, the fund's loan balance reached more than 91.4 billion VND, with no overdue debt. Of which, commercial and service loans account for 48% of outstanding loans; agricultural production loans account for 15.92%; consumer loans account for 13.26% and loans to other industries account for 22.82%.

According to a report of the State Bank of Khanh Hoa Branch, by the end of 2023, the province has  4 people's credit funds (Vinh Phuong, Vinh Thai, Ninh Hoa and Cam Lam) with 7,522 members, an increase of 98 members compared to the end of 2022. Mobilized capital reached 264.1 billion VND, an increase of 13.7 billion VND compared to the beginning of the year; loan balance reached 233.3 billion VND, an increase of 4.6 billion VND compared to the beginning of the year; bad debt ratio is at a low level of 0.06%. The funds operate stably, safely and profitably.

Mai Hoang

Translated by T.T