Savings mobilized from the poor: Small deposit generate great benefit

(VBSP News) One year ago, VBSP’s Yen Bai branch launched the progamme to mobilize savings from the poor through Savings and Credit groups (SCGs). VBSP encourages its clients to make deposit with initial amount of VND 50,000 and monthly accumulation of VND 20,000. The small amount generates great benefit, which makes remarkable contribution to changing the poor’s awareness.

Savings mobilization in Yen Binh town, Yen Bai province

Over the past year, all 43 members of SCG in group 3, Yen Binh town (Yen Binh district) always bring the Pink Passbook at any transaction with VBSP. All SCG members voluntarily make deposit and the specific amount is determined accordingly their economic situation.

Mrs. Nguyen Thi Thanh Huong – deputy leader of SCG said “When VBSP launched the programme to mobilize savings through SCGs, our group held a meeting to update and disseminate the information to all members who finally are aware of the importance and benefit of savings and are all willing to make deposit. Those who are the poorest agree to make monthly deposit of VND 20,000 and the others of from VND 50,000 to VND 100,000. The total mobilized amount of our SCG currently reached VND 55 million. If VBSP clients have habit of savings, they will accumulate small amount to repay the principal. As a result, they will be not so worried on due date. Many members withdrew their savings of more than VND 2 million, which eased the burden to repay the principal on due date”.

At very first days of deployment, VBSP had strong determination to mobilize savings from 100% SCGs in lowland areas and 80% of SCGs in mountainous areas. After one year of implementation, the programme currently has encouraging achievements. As 31st July 2011, VBSP mobilized VND 11.6 billion from 2,040 SCGs (accounting for 89.51%) of 2,279 SCGs entrusted to mobilize savings.  

Mr. Nguyen Thanh Hai – Deputy Director of VBSP’s Yen Bai branch told that “our highest target is to help the poor have habit of savings and have sensible decisions on expenses to save money, and we also aim to create funds for lending to the poor and other policy beneficiaries, which makes great sense. If people deposit only VND 10,000, VBSP is always willing to accept it as we respect every dong from the poor”.   

VBSP mobilizes savings from SCGs members based upon their willingness. Although the purpose of programme is transparent, not every poor household can understand well, especially those who are in disadvantaged areas. It is not easy to help the poor have habit of savings.  

Over the past year, all 43 members of SCG in group 3, Yen Binh town (Yen Binh district) always bring the Pink Passbook at any transaction with VBSP. All SCG members voluntarily make deposit and the specific amount is determined accordingly their economic situation.

Mrs. Nguyen Thi Thanh Huong – deputy leader of SCG said “When VBSP launched the programme to mobilize savings through SCGs, our group held a meeting to update and disseminate the information to all members who finally are aware of the importance and benefit of savings and are all willing to make deposit. Those who are the poorest agree to make monthly deposit of VND 20,000 and the others of from VND 50,000 to VND 100,000. The total mobilized amount of our SCG currently reached VND 55 million. If VBSP clients have habit of savings, they will accumulate small amount to repay the principal. As a result, they will be not so worried on due date. Many members withdrew their savings of more than VND 2 million, which eased the burden to repay the principal on due date”.

At very first days of deployment, VBSP had strong determination to mobilize savings from 100% SCGs in lowland areas and 80% of SCGs in mountainous areas. After one year of implementation, the programme currently has encouraging achievements. As 31st July 2011, VBSP mobilized VND 11.6 billion from 2,040 SCGs (accounting for 89.51%) of 2,279 SCGs entrusted to mobilize savings. 

Mr. Nguyen Thanh Hai – Deputy Director of VBSP’s Yen Bai branch told that “our highest target is to help the poor have habit of savings and have sensible decisions on expenses to save money, and we also aim to create funds for lending to the poor and other policy beneficiaries, which makes great sense. If people deposit only VND 10,000, VBSP is always willing to accept it as we respect every dong from the poor”.  

VBSP mobilizes savings from SCGs members based upon their willingness. Although the purpose of programme is transparent, not every poor household can understand well, especially those who are in disadvantaged areas. It is not easy to help the poor have habit of savings.