Our objective is to sponsor and
help micro entrepreneurs, farmers and working poor people to make
great strides towards economic independence by provide working capital
to generate more income for their households through NTHF micro
lending service program.
This project will focus on the needy people in Viet Nam that fall
into this category.
• Small businesswoman
• Household based micro-enterprises
• Working people
These people are in needed capital
to increase productivity of their existing assets such as re-supply
their inventory, purchase more livestock, fertilizer and/or insecticide
for their farm, etc.
Micro lending service program will assist its borrowers to overcome
their daily hardship by providing them an opportunity to accumulate
income-generating assets which could be turned into productive assets.
Micro lending service program development is critical because access
to financial services is an important factor in the accumulation
of capital among poor people and has been shown to reduce vulnerability
to extreme poverty.
After Viet Nam entering WTO, people have been expecting the government
to ease economic controls and made room for private enterprise,
and there will be more opportunities for people adapt to the new
economic system. Especially in the financial sector, however accessing
to financial service institutions is very limited to the poor, the
majority of the poor have continued to face limited access to financial
services and where these services are made available they are often
at very high cost.
NTHF micro lending service program will assist its recipients to
overcome this matter.
We’ll establish the infrastructure
for micro lending service program within six months from the commencement
date. Once the infrastructure is in place, the pilot program will
be launched. Our goal is the next phase of lending will no longer
depend on our budget. But, the program will continuously self growth
and expand. In order to achieve this objective, we will adapt Kiva’s
business model and deploy it to our lending service program. Once
the lending service program is working well, joining with Kiva.org
is the next step.
Joining with Kiva.org we’ll achieve three main objectives:
• We’ll no longer fund this program
• With this project, we’ll build a mutual partnership with loaner
as well as borrower in the long run.
• Being partner with Kiva.org, we’ll have our presence in the world
Because we initiate this program,
therefore funding for this program depends on NTHF and its budget
availability. My research for this type of loan is average $500.00
dollars for each recipient. In order to achieve the best result,
my suggestion for the initial fund will be $5,000.00 dollars.
This program’s aim is to provide working capital for people who
are in needed to increase the productivity of their existing assets
and to generate more income for their household, using other materials
to alternate for monetary are not yet considered at this time.
For this project successfully, every one in the board of directors
will be involved. But to satisfy our multi-tasks, we should elect
two people to dedicate for this project with 100% support from the
board of NTHF.
Collaborating with any organizations
and people in Viet Nam is essential for this program, because we
need to establish a network of community-based business development
officers to support loan clients, assist in loan recovery and identify
potential new clients.
We’ll have five different types
of business loans and two different types of loans to give to each
business, short term and long term loan, the
durations for repayment the loan
are: short term loan is six months and long term loan is one year.
The re-payment for short term loan is paying off
the loan at its maturity date,
and long term loan is monthly payment.
It is vital that we intensify the pace of implementation. There
are no “off the shelf “models for the implementation of micro-lending
for poverty alleviation in Viet Nam under present condition. It
is important that we proceed to implement the pilot program as soon
as possible, so we can benefit from the evaluation and 'learning
by doing' on our own soil.
The lending service program is an alternative for the charitable
donation program; therefore, the risk is much minimized and will
not effect to our ultimate goal.
* Short Term Loan
** Long Term Loan
September 21, 2007