Contribute to pushing back "black credit" in rural areas

To attract members, contribute to community cohesion, and meet the demand for investment loans to develop production and business in rural areas, most People's Credit Funds (PCFs) in the province have made efforts to innovate and improve the quality of services; operate in accordance with their goals and principles. Thanks to that, the quality of PCFs' operations has become increasingly effective, promoting local socio -economic development, contributing to repelling black credit and maintaining security and order in rural areas.

Contribute to pushing back black credit in rural areas People come to borrow capital at QTDND Ngu Loc (Hau Loc).

QTDND Ngu Loc (Hau Loc) is a unit with a long history in the QTDND system in the province, the fund has the largest scale of operation in the QTDND system. Up to now, QTDND Ngu Loc has 4,980 members operating in 6 communes: Ngu Loc, Minh Loc, Hung Loc, Hai Loc, Hoa Loc, Phu Loc. Chairman of the Board of Directors of QTDND Ngu Loc Nguyen Van Ngu said: During its operation, the fund always takes the development of its members as the foundation, always creates the best conditions for people to access loans conveniently, simplifies loan procedures, and has preferential policies on deposit and loan interest rates, promptly meeting the capital needs of people to expand production and develop industries. As of March 2024, the total operating capital of the fund reached nearly 444 billion VND; total outstanding debt reached nearly 261 billion VND. During the borrowing process, members are always conscious of using the loan for the right purpose, paying interest and principal on time. The fund's capital has supported member households to invest, develop production, business and expand service industries, contributing to improving people's lives, developing the local economy and pushing back usury.

Visiting the seafood processing facility of Mr. Pham Van Long's family in Chien Thang village, Ngu Loc commune, we learned that from a small, spontaneous production household, thanks to a loan from the Ngu Loc People's Credit Fund, his family has expanded production. Mr. Long shared: Previously, due to limited capital, his family only traded seafood to serve the needs of local people. Thanks to the loan from the Ngu Loc People's Credit Fund to purchase equipment and expand the production scale with two refrigerated trucks and two cold storages for frozen seafood. Up to now, each year my family's facility purchases hundreds of tons of seafood for sale to many provinces and cities across the country, creating regular jobs for 20 workers and dozens of other seasonal workers.

Currently, in the province, there are 67 QTDND licensed to operate in 18 districts, towns and cities, with an average of 1,828 members per fund. As of early April 2024, the total operating capital of the funds reached nearly VND 8,700 billion; of which, the charter capital was VND 387.9 billion, the mobilized capital reached VND 7,695.2 billion... Total outstanding loans reached nearly VND 6,300 billion, the average outstanding credit balance of each fund reached VND 97.88 billion. The credit quality of the funds is basically guaranteed, the bad debt ratio is within the allowable limit, accounting for 0.4% of the total outstanding loans. Through the actual operation of QTDND in localities, it has been proven that this is an effective collective economic model, widely supported by the people, contributing to poverty reduction, especially helping to limit the situation of usury in rural areas. The activities of the People's Credit Funds have met the basic objectives of supporting members, developing the community, and at the same time covering costs, preserving capital, and accumulating for development. Thanks to that, the rights of members are guaranteed, and the People's Credit Funds have the conditions to accumulate for expansion and sustainable development.

Promoting the effectiveness of the People's Credit Fund, in the coming time, the State Bank - Thanh Hoa Branch will continue to advise the Provincial People's Committee to direct the People's Committees of districts, towns, cities, relevant departments and branches, People's Committees of communes, wards and towns with People's Credit Funds to coordinate with the State Bank of Thanh Hoa to deploy and effectively implement Directive No. 06 dated March 12, 2019 of the Prime Minister on strengthening solutions to ensure operational safety, firmly consolidate the People's Credit Fund system; Project on restructuring credit institutions associated with handling bad debts in the period 2021-2025; Project on consolidating and developing the People's Credit Fund system until 2020, with a vision to 2030. Continue to direct the People's Credit Funds to deploy solutions to strengthen financial capacity, improve governance, management, internal control, quality and efficiency of operations; Strengthening bad debt handling and credit growth along with strengthening credit quality control.

At the same time, strengthen the connection and mutual support among members to properly implement the objectives and principles in the activities of the People's Credit Fund. Strengthen the supervision, inspection and examination of the People's Credit Funds in the area to prevent, detect and strictly handle risks, problems and violations of the People's Credit Funds, helping the funds operate safely, effectively, according to the objectives and principles and develop sustainably.

Article and photos: Minh Ha

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