Tình thương One Member Limited Liability Microfinance Institution (TYM) has launched a support package worth VNĐ 250 billion for women whose businesses have been affected by the COVID-19 pandemic. Photo The Courtesy of TYM

HÀ NỘI — Preferential loans will be offered to women whose businesses have been affected by the COVID-19 pandemic, thanks to Tình Thương One Member Limited Liability Microfinance Institution (TYM). 

As an associate of the Việt Nam Women’s Association, TYM will give priority to projects which employ women with disabilities, women with or affected by HIV/AIDS and disadvantaged women.

After receiving the loan, borrowers enjoy a grace period of up to eight weeks and preferential interest rates thereafter. Borrowers can also access two microfinance loans from TYM, each worth up to VNĐ50 million (US$2,185). 

Lê Thị T. from Nam Đàn District, the central province of Nghệ An, was one of the first people who accessed the COVID-19 loans.

She said when Nghệ An implemented social distancing measures, turnover from her rice noodle business fell as she made could not go to consumers, or her customers had to delay paying her. As a result, she did not have the fund to continue her business.

“After hearing about TYM’s preferential loans, I applied to borrow VNĐ15 million,” she said. Thanks to the loan, and the gradual relaxing of social distancing measures, she expects business to soon improve. 

Last month TYM also launched employment loans aimed at promoting production in business; the knock-on effect of this fiscal input will be the creation of more jobs for local people. Borrowers could access loans of up to VNĐ100 million ($4,370).

Households that participate in the “One Commune-One Product”, a scheme to promote Vietnamese farming products, or households that implement Vietnamese Good Agricultural Practices (VietGAP) will be prioritised for these employment loans.

During the pandemic, TYM has reduced borrowing interest rates ten times and extended repayment dates for customers affected by the pandemic.

TYM originates from the Tình Thương fund launched by the Việt Nam Women’s Union in 1992, as part of the government’s hunger elimination and poverty reduction programme, while improving women’s status within and outside the home.

TYM provides loans or microfinance for low-income people, many of them poor and vulnerable women. Its members can return the debt by sending their savings to TYM’s branches daily, weekly or monthly, and can withdraw at any time. — VNS