Micro-savings product for the poor

Savings Deposit through savings and credit group (SCG): aimed to (i) meet with the demand of the poor and low- income households based on voluntary savings, build savings habit for the poor to help them create their owned capital for incident expense and future investment as well as get familiar with formal financial services served by VBSP, and to (ii) grow more capitals for VBSP to provide credit for rural community, contributing to poverty reduction, job generation, improve local likelihood and ensure social security.

a) Implementation steps:

Step 1: Member of SCGs having demands for depositing shall hand in money to SCG’s Board of Management (Minumum deposit amount from 5,000 VND).

Step 2: SCG’s Board of Management:

• Receive money and record the amount which the borrower request for deposit into Interest payment and deposit Receipt (Form 01/BL), sign and write full name into the Receipt;
• Record the amount which the borrower request for deposit into List of collectible interest - interest collected - deposit - principal collected from deposit (Form 13/TD), request the borrower to sign in to the Receipt (Form 13/TD);
• Return Interest payment and deposit Receipt (Form 01/BL) to borrowers;
• SCG management board sends money to VBSP implementing the procedures.

Step 3: VBSP implementing the procedure: Conduct deposit collection transactions in cash.

b) Implementation method: Direct transaction to SCGs leaders;

• Component of a loan dossier: List of collectible interest - interest collected - deposit - principal collected from deposit (Form 13/TD);
• Quantity of dossier: 01 dossier

c) Approval duration: Right at the time that customer asks for performing the procedure.

• Target of the procedure: Households (borrowing through SCGs);
• Implementation agencies: lending VBSP (carries out the procedure)
• Approval party:   VBSP
• Coordinating parties: CPC, mass organizations at communal level and SCGs’ Board of Managements
• Procedure output: Interest payment and deposit Receipt (Form 01/BL)
• Fee: None
• List of forms: List of collectible interest - interest collected - deposit - principal collected from deposit (Form 13/TD)
• Requirements for procedure: SCGs must be established and operated under regulations; SCGs must have agreement on savings collection of members recorded in Group meeting minute (form 10A/TD); Each customer depositing money into VBSP shall open and use a demand deposit account.