Village Fund expected to boost grassroots economy

Village Fund expected to boost grassroots economy

  BOONCHU SRITRAIPOP,

PATINYA SRISUPAMART

THE NATION

 

VILLAGERS are overjoyed about this month’s Cabinet resolution to add money to 59,000 Village Funds for vocational support for low-income earners. 

The money is distributed to the Village Funds ranked as Grade A and B.

Villagers said the move was a sign of the government’s acknowledgement of the grass-roots economy’s importance.

Up to Bt1 million per village in loans totalling Bt60 billion and are being distributed via the Bank for Agriculture and Agricultural Cooperatives and the Government Savings Bank.

Also part of this economic stimulation package are grants of Bt5 million to 7,255 tambon for job promotion and investment projects in communities. The Interior Ministry’s Permanent Secretary’s Office is in charge of the scheme, with the grants totalling Bt36.27 billion.

Pornnapa Nenraksa, a member of the Ban Nong Bon Village Fund in tambon Na Pong of Loei’s Muang district, said this revolving fund would create economic opportunities for rural people and promote the economies of communities, as well as help stabilise the country’s economy. 

She said that while the grants were not much, the money would be invested in industries like farming, such as buying fertiliser and pesticides, and would solve villagers’ problems to a degree. 

“The first interest-free two-year period [for the loans] is most welcome,” she said, adding that villagers could borrow up to Bt20,000 depending on their ability to repay the debt within the given time frame. 

Usanee Sapboonmaklee, village head of Ban Nong Bon and its fund’s secretary, said the 134-member Village Fund established in 2000 was run by a nine-strong committee and had capital worth Bt4.4 million. 

She said the additional Bt1-million loan, with an annual interest rate of 6 per cent after the two-year grace period, would be a big boost to people’s quality of life.

“This is a good solution for villagers who didn’t get a Village Fund loan before. Now we can consider more applicants,” she said. 

“We require villagers aged over 18 to apply for membership and we lend money to up to two members from one household at up Bt75,000 each.”

A member of the Ban Nong Bon Village Fund, Salakjit Phetchansri, said he would borrow Bt20,000 to buy parts to fix his work motorbike, while one of his relatives would borrow to cover his restaurant expenses.

Tambon Siew resident Yolchan Kamonrat, having worked closely with Loei’s civil society, said the money was good, although some families were still unable to access the money, so the budget should be bigger. 

He said the Bt5-million-per-tambon grant scheme was too rushed, as it required communities to plan projects within three days. More time should have been given to ensure public participation and variety rather than just plans to build roads. 

Yolchan said villages had ready-made plans for building roads and had submitted them. 

A provincial-level screening committee should be in place to ensure maximum benefit to communities, he said.

The 220 households of Ban Mueang Pha Ruam Jai Moo 5 in Chiang Mai’s Mae Rim district has a Grade B Village Fund as it has systematically managed to improve its residents’ quality of life. 

Fund president Somsri Yakling said all the villagers could receive vocational support loans from the fund without having to borrow from loan sharks. 

The loans also aided various businesses such as trade, ceramics and basketwork, she added.

“This year’s programme requires villagers to use the loans to create family income, not to pay old debts, so it will prevent money being wasted as in the past,” she said. “But the new rule that requires a fund committee member to provide loan surety might cause problems in the long term when the committee needs to be changed.” 

Basketwork-business owner Suthep Homnuan said he borrowed Bt20,000 from the fund 10 years ago to support his business and now had more than 10,000 orders per month.

The business has become his main job and enabled him to hire others in the village such as the elderly. “Because I am a good debtor, I can borrow continuously.” Suthep said.

Ceramics-business owner Phayao Buawatthana said she had borrowed a total of Bt90,000 on three occasions over the past four years to support her business. 

“I plan to borrow more to expand my business and improve my store’s front on the main road, which leads tourists to Mae Hong Son’s Pai district,” Phayao said.