People’s Credit Funds (PCFs) in Dong Nai: A new source of capital for small business enterprise

These correspond to the economic developing demand of poor laborers, participate in developing manufacturing, eliminate hunger, and reduce poverty, raising the people’s life.  Dong Nai has to date about 19 PCFs with a total capital of over 201 billion VND. The total loan turnover of all PCFs reaches 229 billion VND per year which is offered to 12,000 clients. Each PCF maintains an average debit balance at 90% per annum amounted to over 12 billion VND which is offered mostly short-term loans. Bad debts are estimated to be at the lowest rate. PCFs’ lending is growing. Most of PCFs in the province record high profits. Thanks to loans rural farmers received from PCFs and can help them develop their farms in order to increase their standard of living and income.

In the other hand, farmer households are always guided how to make procedure when they need to borrow capital from PCFs. In addition, the loan application is approved quickly and timely to meet capital requirements for business and production development by PCFs. Presently, 2 units take the lead for operational capital and loan balance in the province such as Dong Nai Rubber PCF and Ho Nai PCF with annual average capital of over 20 billion VND and loan balance from 18-20 billion VND.

PCFs in Dong Nai really become reliable friends to small-scale production households. Until now, one-third of total poor families has come out of poverty thanks to loans from PCFs. 

(Source Dong Nai newspaper)