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.