Thanh Hoa microfinance institution implements loan product for ethnic minorities and vulneralble groups

Ha Trung is a district that located in Noth of Thanh Hoa with diverse geographical features and natural resources. The district leaders always focus on developing balance many fields as agriculture, aquaculture, services ... in order to create jobs for local workers. However, the poor and near poor desired to increase income in Ha Trung district is still facing many difficulties such as shortage of working capital, lack of means of production, lack of knowledge of business, ... especially for ethnic minorities and vulnerable groups including poor women, mountainous women, single women, women living alone, women are the main breadwinner in the family... in the district.

Do Thi Thuy - Chairman of the Women's Union Ha Trung district, said: "The poor and near poor households in Ha Trung district is currently facing many difficulties in finding funds for income generation life assurance family, especially for ethnic minorities. Therefore, Thanh Hoa microfinance institution and Women's Union coordinated to deployment a loan product for ethnic minorities and vulnerable groups to support them every step escape from poverty sustainable".

Instead of direct support in cash or kind, the program provides diversity loan products to improving income and quality of life in a sustainable way. Also, Thanh Hoa Microfinance institution regularly organizes training sessions on finance, how to get loans and use capital effectively to improve the income and repay well. Besides the economic benefits, clients also join to the groups to share and exchange business and family care experience.

Mrs Bui Thi Do is a ethnic minority person, she started working in agriculture for over 10 years. Initially, she farmed only vegetable, rice and raise chicken with small models. Since known microfinance institution, mrs Do is one of the first ethnic minority person decided to borrow money to invest in planting pineapple, and keep a part of loan to buy more chickens to raise. She said: "The credit officers of Thanh Hoa Microfinance institution are very friendly enthusiastic, they go to the village to disbursement and collect repayment. Until now, she had 20 chickens and a pineapple hill begins fruiting, promising a bumper crop.


Mrs Do is standing on the pineapple hill that promising a bumper crop


To date, there are 668 members in four communes in Ha Trung district participating in loans of Thanh Hoa Microfinance institution, which has 95% women, 2.4% are from ethnic minorities and vulnerable groups, 5% loan to build water systems or sanitary latrines, biogas. After a period of participating, the clients loved the friendly and efficiency loans and the repayment way: "get whole loan once, repaid over many months", easily borrow, easy payment and also get the next loan cycle with higher capital levels. The refund rate on time of the Ha Trung district is 100%.

The poverty reduction efforts of Thanh Hoa Microfinance institution and Women's Union Ha Trung district have an important contribution in improving the quality life of the people and fulfill the goal of new rural program in communes in the district. Currently, the Thanh Hoa Microfinance institution is active in 13 districts in the province, is expected in 2016 will continue to implement this model to the Thach Thanh and Nhu Thanh district.

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