Thanh Son Town People"s Credit Fund: Creating “leverage” for local economic development

By October of this year, the People"s Credit Fund of Thanh Son town, Thanh Son district will have completed 16 years of operation and has grown in both size and credit quality, becoming a timely on-the-spot lending channel, asserting its role of creating “leverage” for the local economic development.

Established in 2007, it is the first fund established in the district. At the beginning of its operation, the People"s Credit Fund of Thanh Son Town faced many difficulties in human resources when there were only six officers. With limited equipment and poor facilities, the Fund had to rent houses from residents in Hoang Son street, Thanh Son town to make transaction offices, and sometimes had to use safes to replace warehouses for asset preservation. The Fund has a small working capital, with a legal capital of VND 136 million, meeting a maximum loan of VND 15 million per individual customer. In addition, people did not know much about the Fund, managers and executives had low professional qualifications, so it got a lot of difficulty in raising deposits and loans.

Since its establishment, the Fund has attracted over 15,000 depositing customers with a deposit turnover of over VND 1,698 billion; provided loans to 8,154 customers with a loan turnover of VND 1,972 billion. Ms. Ha Thi Ngoc Vinh - Director of the People"s Credit Fund of Thanh Son Town said: “In order to ensure that the operating capital promotes local strengths, we focus on exploiting idle capital among the public through application of many diverse, rich, attractive and flexible deposit forms; coordinate with departments, branches and mass organizations to build a “centipede-foot-shaped” system in residential areas, with the head of the area and the secretary of the Party cell being the core force in understanding the customers’ situation during the capital utilization process. … Along with that, the Fund also promotes its advantages of being close to the people, well understanding about the people, together with its quick but strict and secure procedures.

Through the process of formation and development, with the great solidarity and efforts of the Fund"s collective as well as the attention of local authorities and the banking industry, up to now, the Fund has admitted nearly 1,800 members, increased 15 times compared to the first year of establishment of the Fund; total operating capital reached more than VND 262 billion, an increase of 235 times compared to the first year of establishment; deposits reached more than 238 billion dong, up 777 times compared to the first year of establishment; the Fund has a total working capital of more than VND 233 billion, an increase of 227 times compared to the first year of establishment, and no bad debt. The efficiency of credit capital has helped many members to invest in production and business, contributing to creating jobs and promoting socio-economic development in the locality.

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