Sustainable Microfinance to Improve the Livelihoods of the Poor in Post-Covid 19

Three weeks ago, from the day of removing the blockage, many families had to borrow “a black credit” with an extremely high-interest rate (to 20-30 %) for their re-start-up capital. This brought them into a poor circle with debt pressures and even living in terrorizing situations from their creditors.

In response to the most in need of these families, Jesuit Social Caritas has implemented a kind of “microfinance program” to support and maintain their small business. The microcredit is various with 3 levels: 1.5 million- 2 million- 3 million depending on each family. To receive this support, 4 following conditions must be committed:

1. Not using this credit to repay debts (renting houses, buying foods in Covid time…)
2. Using this credit for investing in their business only, not for other purposes (such as buying medicines, buying foods or equipment for family, school fees for children…)
3. Setting up a group-based model ( 4-5 households come together as a group, with a leader to connect and represent the list in asking for their support)
4. Helping others: when the business of a household is getting stable, they will try to give another household with a similar credit they have been received.

Thanks to the efforts and enthusiastic connections of various coordinators such as sisters from Congregations of Holy Cross of Cai Mon, Tan Viet, Thu Duc, sisters of Servants of Sacred Heart of Jesus, coordinators from Caritas of Thu Duc Region, the program has established more than 100 groups to support the microcredit for more than 400 poor families in poor regions of Cai Mon, Binh Chanh, Tan Phu, Thu Duc…

The program is going to be continued until the end of October 2021. It belongs to the second stage of the “ Rice Program”. In the first stage which lasted for 4 months in the blockage of Covid, we had supported the essential food for about 30,000 poor families by giving them “fish” to overcome the difficult period. In this second stage, we want to provide them with “ fishing robs” by an amount of certain microfinance so that they can “fish” by their efforts.

We are looking forward to receiving supports and shares from benefactors in Vietnam and around the world.

Please contact Fr. Truong Van Phuc- Jesuit Social Caritas of Vietnam- 19  Street 5, Quarter 2, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam. Phone 0902 448 285.

Or transfer directly to account: Truong Van Phuc, Vietcombank, no. 0381000398441 with the message “ Supporting the Rice Program”.