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Updated: 2018-07-08 13:49:14

Micro-savings for the poor

(VBSP News) VBSP in Long An is one of the leading branch in mobilizing savings through Savings and Credit group. Through savings mobilization, the people, especially the poor and the policy beneficiaries has raised the sense of savings, accumulation to pay debts, reduce burden on repayment period due.

Bà Đặng Thị Phim (trái) được Tổ trưởng Tổ tiết kiệm và vay vốn hướng dẫn gửi tiết kiệm qua tổ

Ms. Dang Thi Phim (left) is guided by the Head of Savings and Credit group to deposit savings through the group

In 2009, VBSP started to mobilize savings through Savings and Credit group. Deputy Director of VBSP Ben Luc, Pham Van Kiet said: "Initially, the implementation was difficult because people asked why they had to save money while they were poor. Their life was difficult; income was not stable so they were afraid to participate. VBSP, unions and leaders of the Savings and Credit Group actively propagandize about the purpose, benefits of participating in saving deposit through SCG. Since then, the members gradually understand and agree to participate. "

Over 9 years of implementation, the district has 234/234 SCGs having savings deposit with a total deposit of over VND 16 billion making an average of VND 69 million per team. There are 9,824 out of 10,025 members (98% of total members) participate in savings through the group, of which 7,143 / 10,025 members (71%) regularly deposit savings. Ms. Dang Thi Phim, who lives in Hamlet 2, An Thanh commune, said: "In 2010, my family was poor and borrowed VND 10 million from VBSP to raise pigs. In 2017, my family escaped from poverty and continued to receive loans under the new poverty escape program to plant 5,000 square meters of lemon. Because of the huge loan amount, I worried that I cannot afford to pay VBSP when the payback period ends. But thanks to the saving amount of VND 300,000/ month, my family had accumulated a sum of money to repay the loan without too much effort."

Depositing savings through SCGs does not only help beneficiaries of credit policies to reduce pressure on repayment of loans, but also helps accumulate a large amount of money for economic development. Ms. Pham Thi Tuyet Nhung, who lives in hamlet 2, An Thanh commune, said: "Thanks to VBSP VND 50 million loan, I have conditions to rent land for planting lemon. Monthly, after subtracting production costs and household expenses, the remaining money I use to deposit savings. So, when it comes to repayment due, I not only have money to repay the debt but have a residual investment to plant lemon.

Mr. Pham Van Kiet added: "The mobilization of savings through Savings SCGs brings double benefits to both parties. The bank has more capital for more poor people, policy beneficiaries to have access to preferential loans of the State for production and business development whereas customers have accumulated savings to pay debts and use for risk provisions.

Mobilization of deposits through SCGs helping the poor, policy beneficiaries to accumulate capital, well implement debt repayment plan and have more capital to expand business development and sustainable escape from poverty.

Le Ngoc- Long An News



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year