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21/01/2014 16:17:06 PM

Credit changes life

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Early 2009, after a market survey, M7-Dong Trieu decided to expand to Mao Khe Town with a source of financing from Cordaid. Up to May 2011, there are 1,544 members, out of which 1,135 are current borrowers. Total outstanding loan balance for the area is more than VND 6 billion. Thanks to money borrowed from the fund, many women have come out of poverty. Mrs. Nguyen Thi Thu Hang (Center No.19, Vinh Tuy 1, Mao Khe Town) is a typical example.

Two years ago, when heard about a credit program, she and her neighbors were eager to attend the introduction meeting, from which income-generating ideas came across her mind. But, she did not know which route to take. After attending 2 member training workshops, learning from stories and experiences of other women, she found her own direction. She discussed with her family and gained strong support from them, making up her mind to become a fund’s member.

She used her first loan of VND 3 million to buy 5 breeding pigs. To feed those pigs, she gathered left-over food from neighbors and available vegetable at home. She also planted vegetable to earn more income. This source of income together with wage from hired-labor work are used to repay monthly installments and for daily expenses.

At first, because she had not got used to installment payments, she found it difficult to deliberately calculate to have money to repay and deposit every fortnight. Her husband also grumbled and asked her to stop borrowing after fully repays.

The pigs could be sold after 3 months, and all her effort was worthwhile. They earned 2 million on each pig and already paid off their loan. And finally, her husband understood the benefits of microcredit. They reinvested all the revenue to raise 8 pigs per litter. At the end of the first circle, she had raised 4 litters of pigs and accumulated a sum of capital.

Initial success motivated her to borrow the second circle to raise a flock of duck. Her husband no longer grunted, but total upheld her instead. VND 5 million was invested into 500 breeding ducks at unit cost of 7,000 dong/duck and food. Available sources of food helped lower her cost and push up net income. So, beside income from pig, she now also earned about VND 50,000/duck. Their happiness was compounded.

In early 2011, with accrued experiences and capital, she rented a piece of land to make a fish pond and develop an aquaculture model. The amount of VND 8 million in the third circle maturing in 24 months was pumped into making the pond. She plans to borrow 8 million more to buy breeding fishes.

Lying ahead of her eyes is a long road and M7 – Dong Trieu will be a helpful accompany.