Workers in export processing zones and industrial parks learn about the harmful effects of “black credit” through online activities organized by CEP – Photo: A.Khoa
And CEP is a microfinance organization belonging to the Ho Chi Minh City Confederation of Labor, which many might consider a “float” in the midst of a sinking.
Ms. To Thi An (from Ha Tinh province), a garment worker in Linh Trung Export Processing Zone 1 (HCMC), said she had borrowed from the CEP for 6-7 years and was one of hundreds of thousands of poor workers and workers. Loans are available from this fund at low interest rates.
Borrow for treatment, send children to school
Ms. Ann has borrowed from CEP six times and is waiting for approval on the seventh to prepare for her children’s return to school. Recently, she borrowed 15 million dong for the treatment of her husband’s illness and paid back both the principal and the interest only last month.
The couple raise two young children, her sister is an employee, her husband is a freelancer, but he just had surgery for a brain tumor, so he can’t do anything. “I borrowed CEP 10 million times, 20 million times, and then returned it. The last loan of $15 million, every month, 1.32 million is deducted from the company’s salary and paid off in a year. After that, apply for another loan”, Ms Ann said. Have a laugh
Like Ms. An, Ms. Phuong (32 years old, from Quang Ngai), a garment worker in Binh Tan District (HCMC), is also a “close customer” of CEP. Phuong has two children, one to be sent back to her hometown to ask her grandparents to take care of her, the other to live with her mother in Ho Chi Minh City. Borrowing 30-40 million VND, she enlisted her elderly parents to take care of the house, help her children grow up to study, and send it back to her hometown.
But in recent years, the work of the two sisters is getting harder every year, when “no job, no overtime”, life has become more and more difficult. One’s salary is about 7 million VND per month, if housing, medicine, overtime for children’s going to school is 9 – 10 million VND, the whole family is also frugal.
A family of four cannot buy food for a few tens of thousands of people every time they go to the market. Luckily, a family member in Vung Tau grows vegetables and ships them up, so that helps too. Ms. Ann said, “I took advantage of the company to collect bottles, sell a little extra food. But it does not happen when I have to dare to borrow CEP to take care of medical treatment, medicine, my children’s education. amount is required.” sincerely.
Some people borrow millions of dollars when they are in dire straits, but don’t pay it back for years. My wife and I are constantly sick, sometimes it’s hard, but we don’t dare to touch the “black shrew”.
Ms. To Thi An (Garment Worker)
borrow and save at the same time
Mr. Le Vo Tan Luy, Deputy Director General of CEP, said that CEP has just signed a cooperation agreement with the labor unions of 9 provinces of Southeast region and Mekong Delta (Dong Nai, Binh Duong, Long An, Tien Giang). Ben Tre). Bamboo, Dong Thap, Vinh Long, An Giang, Tai Ninh) in early July, the CEP microfinance organization of the trade union was implementing the project to participate in the prevention and control of “black credit” among workers. Moving forward.
It is a project of the Vietnam General Confederation of Labour, which aspires to be a reliable financial base, helping poor workers and workers, especially workers in direct production, have the opportunity to create jobs and increase income Is. income, improve the quality of life, actively prevent “black debt”.
According to Mr. Luy, no bank or credit institution can give loans as easily and quickly as “black credit”. However, in the project just signed, the parties will make every effort to ensure that employees receive loans in a timely manner in case of events and uncertainties.
Mr. Luy said, “CEPs have transaction points in industrial parks so that workers can come directly for registration. Workers can also contact trade unions and cluster heads directly for instructions on procedures.”
Currently, CEP has around 341,000 customers who are labor and labor poor and has interest rates of 0.6 – 0.65%/month on principal balance. CEP also has an emergency loan package for employees at an interest rate of 0.5%/month, a maximum loan of VND 15 million for a maximum period of 12 months to meet immediate needs due to illness, natural disasters, fires, epidemics .
With CEP funds, borrowers can choose to make weekly or monthly payments depending on income status. For example, an employee with a monthly salary will make monthly payments while receiving the salary, and at the same time practice saving small amounts. Mr. Luy said many people dine out, borrow CEPs and pay each month, but everyone can save.
CEP helps people to accumulate small savings over a period of time along with repayment tenure of principal and interest. Some send only a few tens of thousands per week, but this accumulation partly helps to solve unexpected difficulties when their children are sick and go to school.
“When many people pay off their loans and withdraw this money to cover emergencies, they end up with 5-10 million dong accumulated,” Mr. Lui said.
loan is in high demand
Established in 1991, CEP Microfinance Institution has so far provided loans to more than 5.4 million customers who are workers and low-income workers through 36 branches in 10 provinces and cities across the country. At the same time, CEP organized the “CEP – Share the Love” program to help workers repair their homes, providing thousands of scholarships each year to the children of workers and employees who are CEP’s customers with difficult circumstances. . Poor.
Le Vo Tan Luy, Deputy Director General of CEP, said that in the context of economic difficulties, there is an increasing demand for low-interest loans from employees, but CEP’s resources are limited. CEP is currently raising deposits from the public and organizations with competitive interest rates to share income and serve poor workers, help disadvantaged workers access preferential capital, avoid borrowing “black credits”.
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