VBSP has just supplemented the lending program for near-poor households in 2013 while there are still 1.5 million near-poor households all over the country, accounting for 7% of total population of Vietnam (2011).
So far, many near-poor households who may be almost in the same situation as the poor do not receive much supports from the community, particularly financial supports. However, many near-poor households who are also vulnerable in the society now will benefit from VBSP’s preferential lending. Accordingly they will pay higher interest rate than the poor but lower than commercial one and still enjoy the same favors in lending conditions and procedures. Many of them were VBSP’s clients in the past when they were still poor and VBSP now is again by their side to help them become absolutely invulnerable. The new lending is marked as a milestone in VBSP’s roadmap to increase the interest rate in hand with the development of its clients on a sustainable basis.
We all know that the microfinance crisis in some countries in 2010-2011 is a wake-up call about the need to focus more on the growth of our clients’ businesses than on the growth of the institutions that provide them financial services. As VBSP before already understand that over-indebtedness of clients may lead to instability and even collapse of microfinance institution, VBSP always gives the best favours to vulnerable targets to leave poverty behind. VBSP’s clients benefit not only favourable lending conditions and procedures but also preferential interest rate to develop their production and business more easily and more successfully.
VBSP commits to continuously diversify its target groups, products and services on higher interest rate basis in the coming time. With the slogan “the success of clients is also our success”, VBSP has become the confidential fellow of the poor, the near-poor and other policy beneficiaries in Vietnam on the way to improve their economic and social status.