Bien Hoa branch of CEP Fund (Capital Aid Fund for Employment of the Poor) was established on December 12 with an aim to improve the welfare of the poor and the poorest in the city through the provision of financial services for income generation and employment creation.
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| CEP gives loans to 3,300 poor households in Bien Hoa |
Bien Hoa branch of CEP Fund (Capital Aid Fund for Employment of the Poor) was established on December 12 with an aim to improve the welfare of the poor and the poorest in the city through the provision of financial services for income generation and employment creation. After nearly one year of operation, the branch has provided micro-credit loans worth some VND18.5 billion to 3,300 local poor households.
The CEP Fund provides loans to clients based on their commitment to repay the loan, with no collateral required. The three loan products are classified as Daily, Weekly or Monthly, due to the repayment frequency of the loan. Daily loans are repaid daily, Weekly loans are repaid weekly and Monthly loans are repaid monthly. Accordingly, it reaches more than 90 percent of repayment in due time – a dream rate that any creditors want to.
For jobless clients, the CEP helps them buy production tools, create self-employment activities for the poor. CEP also aims to reduce the rate of unemployment by creating income-generating activities among the poor by providing loans for setting up or expanding micro-enterprises such as animal husbandry, waste recycling or other activities.
Besides, the CEP opened vocational training courses and provided consultancy to help its clients to use capital effectively. "To support the poor and to improve their livelihood, it is crucial for them to have equal access to markets, information, skills and training. Active support from related agencies and authorities at all levels is extremely important," said Huynh Thanh Hai, Head of the Bien Hoa branch.
Presently, Bien Hoa branch of CEP offers small loans to poor workers in enterprises of Le Phan, K&P, etc so that they are able to upgrade their houses, buy motorbikes and pay school fees for their children. Over the past time, the branch has made practical contributions to the city’s hunger eradication and poverty alleviation program, has substantially improved living standards of thousands of poor families in the local.
Reported by T.Thuy
