Tran Van Khanh says he remembers the days when his family did not have enough clothes to wear. Struggling to survive, they had to use all their savings to plant cassava, corn and beans to barely keep themselves fed.
Tran Van Khanh says he remembers the days when his family did not have enough clothes to wear. Struggling to survive, they had to use all their savings to plant cassava, corn and beans to barely keep themselves fed.
Yet since Khanh joined the Xuan Truong People’s Credit Fund and borrowed over VND70 million (US$4,300) to build a farm, his life has gradually improved.
Khanh says he now grows different varieties of cereal crops and fruits.
"We escaped from poverty and are endeavouring to get rich," he says.
His family earns over VND500 million ($31,000) a year and employs 20 labourers who each enjoy a salary of VND1 million ($62) per month.
Khanh says he can even set aside some money to put back into the fund in order to help other poor households escape from poverty.
The fund’s loans have helped more than 30 households in Cha Rang Hamlet, where Khanh lives.
One of the fund’s advantages is that poor people with little land for cultivation are also eligible for loans.
As long as applicants have good outlines for production and trading projects, they stand a good chance of receiving funds that may even exceed regulated loan caps to help new businesses such as breeding farms.
Doan Thi Thanh Phuong from Trung Tin Hamlet borrowed VND150 million ($9,300) to build a farm for raising pigs and cows. Since the loan, Phuong’s family has raised 320 pigs and cows, earning a net profit of more than VND120 million ($7,500) a year and creating regular jobs for four workers.
She will also get help from the fund to raise fish and produce micro-organic fertiliser.
Founded in 1994, the Xuan Truong People’s Credit Fund is run by the State Bank of
Since then the fund has attracted 2,641 households and has been able to offer loans of up to VND18 million ($1,100) for each household.
In the first six months of this year alone, the fund lent more than VND17,600 million to 1,973 households, to help them grow coffee, pepper, cashew nuts and fruit and breed cows, pigs and goats.
Over 2,600 households have established secure incomes thanks to help from the fund.
Chairman of the Xuan Truong Fund’s Management Board Le Cam says the fund has increased its registered capital to VND1.7 billion ($106,000) this year, while opening new transaction centres in mountainous and remote areas.
The fund has become a key provider of loans to help local people escape from poverty and provide an alternative to loan sharks in Xuan Loc District,
(Source: VNS)
