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Village Savings and Credit Facilities
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RUDEP
first established VSCFs in early 2003 to enable poor
households in selected Communes in Quang Ngai to access
credit to support investment in production technologies
and increase incomes. VSCFs are established on the basis
of poor and low-income households trusting in each other
to manage the facilities themselves and take
responsibility for each member’s loan repayments. RUDEP
provides initial ‘seed’ capital for the group members to
borrow and repay into a revolving fund without the need
for collateral. Key characteristics of VSCFs include: |
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Each VSCF consists of 15-30 members
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At least 50% of VSCF members are
women
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At least 70% of VSCF members are
poor (according to DOLISA or Wealth Ranking)
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Loan size of between 500,000 –
6,000,000 VND
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Loan term between 3 – 15 months
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Interest rate of loans of 1% per month.
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Compulsory monthly savings by each member is an additional
feature of the VSCFs. The compulsory savings component
encourages households to become used to saving regularly and
provides members with some money for family emergencies or
regular/irregular expenses. An additional source of income is
generated through interest being paid on their savings
(equivalent rate to the non fixed-term savings accounts of the
Viet Nam Bank for Agriculture and Rural Development)
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Information on the current status of RUDEP’s VSCFs is outlined
in Progress Reports in the Achievements section of the RUDEP
Website. |
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You can read the guidelines and other VSCF related documents
in the Library.
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