(And other individuals/organizations)


Program overview

Since 2011, Hearts for Hue (H4HF) has established the Microfinance Program (MFP) with the aim of promoting economic sustainability and enhancing the status and equality of women and positively impacting child welfare among poor households and low-income communities.

The program has received a total investment of 5,222,498,000 VND from VESAF, D.O.V.E FUND, French student groups, and individual sponsors (updated as of April 12, 2023). Through the program, nearly 1,000 borrowers have received funding, job opportunities, and increased income, including 608 who are currently participating in the program across three project areas: Vy Da and Huong Van wards n Huong Tra town, and Phu Gia commune in Phu Vang district, Thua Thien Hue province.

Hearts for Hue’s Solution:


Hearts for Hue provides microfinance loans along with financial management training courses to poor women with the aim of sustainable economic support, income generation and challenging current, gendered power relations. A small number of disabled or otherwise marginalized men are also supported.

How the Programme Works:

Hearts for Hue works with the local authority and the local women’s union to assess the level of poverty and capacity for business development. Interested women are invited to take part in an introductory lesson in microfinance. Following the lesson, women can fill out an application form for the program. Selection criteria is based on the level of need and capacity for business development.

Once borrowers are chosen for the program, H4H starts training a Community Management Board who oversee the loan program locally. This training covers both the general theory of microfinance and technical skills such as working with excel.

Loans size, duration and interest:

Hearts for Hue believes in the importance of supporting one another, therefore women are placed into groups of ten borrowers. These groups are expected to assist each other with payments and business. If one member is unable to pay back their loan fully, the group assists financially. Women are encouraged to share ideas and help each other out with their businesses. This creates a strong network of financially independent women.

Loans are used in a variety of ways, such as breeding of livestock, cultivation of various crops, sale of consumer goods, or any other purpose that will improve their livelihoods.

Loan sizes are dependent on the borrowers’ needs, however a borrower’s first loan with H4H is typically 10,000,000 VND (approximately 440 USD). After successfully repaying the first loan, borrowers are able to apply for subsequent, larger loans. The rationale for increasing the loan size is twofold. Firstly, this should best reflect the needs of an expanding business. Secondly, the larger future loan size serves as a form of collateral; why default now, if I can get a larger loan in the future?

Loans are repaid monthly with low interest rates ranging from 0.4% to 1% per month. Rates of 0.4% are reserved for the poorest clients, and is typically below the rate of inflation in Viet Nam.

Microfinance loan terms are flexible, ranging from 10 to 24 months.

Hearts for Hue uses interest payments in other activities that support microfinance clients such as business development skills training and program management overheads. It also retains a small amount to cover program management expenditures. We have carried out our Microfinance Program in Hue City since 2011 and currently provides services to over 1.000 marginalized families.

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Hearts for Hue believes in complete transparency. Please contact us for a copy of the de-identified repayment history of every loan given in either of our programmes. For the benefit of microfinance clients, H4H encourages other microfinance providers to provide the same.