Overcoming Poverty through People's Credit Funds: Success Stories and Impact, High school final essays of Economics

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Escape from poverty thanks to loans from people's

credit funds

Over the years, the People's Credit Fund (PCF) in the province has been effective in "break a way" for many households to develop their economy. This loan has been strong support for many poor people in rural areas to get out of poverty and stabilize their lives. Loans from the PCF fund helped Mr. Pham Van Lam's family invest in a building material store, rising out of poverty. The fulcrum of the poor We visited Mr. Hoang Van Binh's family, in hamlet 1, Tan Long commune, Phu Giao district, a poor family in the commune. With a look of pain and suffering, with a sincere and simple voice, Mr. Binh confided: "My wife and I were in a very difficult situation before, every day we had to get up from 1-2 a.m. to go to the garden to shave. Latex is rented until 8-9 am but the income is just over 7 million VND/month. Thanks to the support from Phuoc Hoa PCF, my wife and I were determined to change our lives, and boldly borrow money to receive a contract to exploit the orchard to increase our income, so the economy improved a lot." The story of Mr. Binh's family is an example of overcoming difficulties and rising out of poverty at the hands of hard work and strong determination. After many years of renting rubber latex, the family life is still barely enough to eat. In 2021,

they boldly borrowed VND 150 million from Phuoc Hoa People's Credit Fund and contracted 2 hectares of rubber within 2 years, and after 2 years of shaving, they will return the tree to the garden owner. In 2022, Binh and his wife decided to "contract" for another 4 hectares of rubber within 3 years. From here, every month, Binh's family earns more than 20 million. Thus, in only the first year, his family almost paid off all the debt, and the money made 2 years later is a net profit. After the old debt was due, they were lent 300 million by the PCF of Phuoc Hoa with a preferential interest rate to implement the economic development plan. According to the reporter's research, over the years, the PCF in the localities has really been a "financial angel" for people, especially poor households to rise up in society. Typically, Mr. Pham Van Lam's family lives in group 3, hamlet 1B, Phuoc Hoa commune, Phu Giao district. In the past, small-scale pig raising only brought enough income for the family. In 2020, the family borrowed more capital from the PCF to open a building material shop with a revenue of 400 million/month. His income increased, his family life was more stable, and his children were well educated. Evaluating the role and performance of the PCF, the leaders of the localities all said that the PCF plays a great role in the socio-economic development of the locality. Mr. Nguyen Van Xuan, Chairman of Phuoc Hoa Commune People's Committee, shared that the PCF model in the area has contributed to mobilizing and exploiting local capital sources to solve the people's demand for loans for production and daily life; thereby creating jobs and improving people's living standards. Besides, the PCF makes an important contribution to the process of building a new countryside in the commune in particular and the localities in general. The timely supports Every day, at most PCF based in the locality, there are quite a few people who come to transact and receive instructions and instructions from the management, dealing with all procedures for lending, sending, and receiving money. Mr. Doan Van Huan, Chairman of the Board of Directors of Phuoc Hoa PCF, said: "The fund's lending support is carried out quickly, creating all favorable conditions for people with loan needs to access capital. Fast, safe and effective loan. The member's loan use process is regularly checked, so the fund's capital has been used for the right purposes, promoting efficiency, helping farmers increase incomes and escape poverty. .. ". As of April 2022, Phuoc Hoa PCF has more than 4,410 members, with an operating capital of over 550 billion VND, total loan debt is more than 298 billion

VND, the bad debt ratio is only 0.35% / total Debit balance. Phuoc Hoa PCF has created favorable conditions for local people to access capital to increase production, development, and nurture. As a regular and long-time customer of Phuoc Hoa PCF, Ms. Pham Thi Tam's family in Hamlet 2A, Phuoc Hoa Commune also changed their lives in this capital. Ms. Tam shared that in order to have a stable economic life like today, the family is grateful for the quick and quick support of the people's credit fund. Not only Phuoc Hoa PCF, but other PCF in the area were also born with a suitable system and simple procedures to help people have a safe "channel" to borrow capital, expand production and bring in income high. With the goal of safe business and effective investment capital, people's credit funds always follow the local socio-economic development orientation to develop appropriate plans and operating regulations in order to perform well solutions for the principal activities are to improve the living standards, eliminate hunger and reduce poverty for the people in the area. According to the Co-operative society, in the coming time, the unit will continue to improve the quality of operation of the PCF in the direction consistent with the management capacity; concentrate capital for member households, and link up with cooperatives to get loans to invest in production and business development, economic restructuring, expansion of industries, reduction and elimination of poverty. usury exists in society. The unit will also advocate for the establishment of a new PCF in localities where there is no PCF such as Ben Cat Town, Tan Uyen Town, Bau Bang District, Bac Tan Uyen District according to the Resolution of the Provincial Party Committee. TIEN HANH