H4H

Microfinance Program:
Vy Da Ward, Hue City
sponsored by DOVE Fund

The  Vy Da Ward, Hue City Microfinance Program is Hearts for Hue first Program under its Microfinance Project.

The Microfinance Project of Hearts for Hue was established with the aim to reduce poverty and to help fishing households achieve sustainable financial independence through the provision of loans for small enterprises; and to develop the capacity of poor members of the community to improve their livelihoods with training and education programs.

With an initial budget of 35,000.00 US$ this Program is sponsored by D.O.V.E. Fund a non-profit organization, founded in 2000, whose goal is to provide humanitarian and development assistance to the impoverished areas of Vietnam

PROGRAM GOALS

Reduce poverty and help households achieve ongoing financial independence through the provision of loans for small enterprises;

Develop the capacity of poor members of the community to improve their livelihoods with training and education programs.

PROGRAM OVERVIEW

Location: Vy Da Ward, Hue City, Vietnam.

Duration: Ongoing since 2011 and it is scheduled to run till 2020

Main donor: D.O.V.E Fund

Total estimated budget: 35,000.00 USD

Estimated beneficiaries over the duration of the Program: 500 poor families

The Microfinance Program has been carried out since 2011 in Vy Da Ward, Hue City. The program offers unsecured loans to groups of poor people. Each group guarantees loans to help others do business and pay debts off to each other. Loans are offered for a range of purposes such as running businesses, breeding livestock, cultivating crops, processing mushrooms, consumer goods and fixing houses, or any purpose that will increase their livelihoods. The size of the loan is dependent on each household’s need. However, they never exceed 5 million VND (approximately US$240) in the first year, 7 million VND (US$336) in the second year and 10 million VND (US$480) in the third. Borrowers pay the principal loan plus the interest monthly. The loan terms are flexible, ranging from 12 to 24 months, depending on each household’s solvency.

To be a participant in the Microfinance Program, borrowers are obliged to join a savings program. The monthly saving is 10.000VND (approximately US$0.5). The full savings are refunded to clients when they stop participating in the program. To add to their savings, clients also receive interest of 10% per year. All borrowers are encouraged to take part in an optional saving programs according to their needs and solvency.

Beside the loan provision we provide training courses to assist borrowers develop their business. For example, borrowers involved in food preparation or processing receive training on hygiene and food safety. Borrowers involved in mushroom cultivation and frog raising are trained in these activities. The children of the clients who are at risk are provided a scholarship to cover the cost of annual school fees, school uniform, school books and other school materials. Moreover, we carry out health care program for the clients and their relatives.

RESULTS OF THE PROGRAM from 2011 to 2017: 

Since 2011 the program has funded over 500 clients, mainly poor women running small businesses. Most clients have required little capital since the initial loan. Usually, after receiving the loan, the households are all able to run their businesses effectively and thus, they increase their families’ incomes, help eliminate hunger and reduce poverty in their area.

The program is scheduled to run until 2020.

SUCCESS STORIES

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