Microloans

The micro-loan process in the socialist-style market economy of war-ravaged Vietnam is challenging due to several factors: the need to seek the participation of local governments, train the borrowers, disburse loans and collect payments in cash, and travel on small rural roads. As of 2009, FESR was the largest microfinance organization successfully serving the ThuaThien-Hue Province. Similar to other large MFIs, such as CEP (operating in Ho Chi Minh City), and TYM (operating in Hanoi), FESR has a focused and sustainable microfinance operation.

FESR is one the few organizations that has managed to work with Hue City and the ThuaThien-Hue province to be included as an important feature of development plans in the community.

FESR starts with a study of each community to establish an operating plan and goals. Upon approval by the Board, two workers are assigned to work with the local government, seek a local collaborator, inform the population, and form mutual support groups. The staff conduct training sessions with loanees regarding borrowing objectives, bylaws, and the loan process.

             

Additional Resources :           MFI Primer : Vietnam (.pdf)           MFI Regulations : Vietnam (.pdf)

FESR has successfully increased its outreach to the community with growing number of loanees and total amount of loans disbursed. In 2009, we are serving more than 14.158 individuals and giving out $500.000 thousands of loans to improve the lives of the loanees.