M7 Microfinance Institution
Approved to post Kiva loans from: Vietnam
Status update — March 4, 2019
Kiva and M7 Microfinance Institution have agreed to temporarily pause their partnership. M7 is currently working to update their compliance with local regulation, during which time they will be unable to send funds out of Vietnam. Once this process is complete, M7 intends to make payment in full of all past due funds to Kiva lenders. Although the timeline for this process is hard to predict, M7 hopes to receive approval as soon as possible and we look forward to their return to the Kiva platform at that time.
Partner Description
M7-MFI is a microfinance institution in Vietnam that is focused on serving poor women and ethnic minorities in the northern part of the country.
The organization disburses loans to groups of up to five individuals in local communities. Loans are divided into three general categories, including short-term seasonal loans of six months, short loans of between nine and twelve months, and medium term loans of between 18 and 24 months. Additionally, M7-MFI provides gender education and business consulting services to clients in their homes and at group meetings.
A unique lending approach:
M7-MFI offers loans for several purposes, including obtaining capital for small businesses, assisting with education and health services, providing environmental protection, and providing access to specific resources for women.
In Vietnam, half of ethnic minorities still live under the poverty line. Challenges include gender inequality, family violence, and low education levels. M7-MFI aims to rise above these challenges by providing loans to this disadvantaged group. In addition, the organization regularly provides gender education and business consulting services, and builds homes for poor clients. With Kiva’s support, M7-MFI would like to meet existing demands from clients and expand operations.
Kiva and M7 Microfinance Institution have agreed to temporarily pause their partnership. M7 is currently working to update their compliance with local regulation, during which time they will be unable to send funds out of Vietnam. Once this process is complete, M7 intends to make payment in full of all past due funds to Kiva lenders. Although the timeline for this process is hard to predict, M7 hopes to receive approval as soon as possible and we look forward to their return to the Kiva platform at that time.
Partner Description
M7-MFI is a microfinance institution in Vietnam that is focused on serving poor women and ethnic minorities in the northern part of the country.
The organization disburses loans to groups of up to five individuals in local communities. Loans are divided into three general categories, including short-term seasonal loans of six months, short loans of between nine and twelve months, and medium term loans of between 18 and 24 months. Additionally, M7-MFI provides gender education and business consulting services to clients in their homes and at group meetings.
A unique lending approach:
M7-MFI offers loans for several purposes, including obtaining capital for small businesses, assisting with education and health services, providing environmental protection, and providing access to specific resources for women.
In Vietnam, half of ethnic minorities still live under the poverty line. Challenges include gender inequality, family violence, and low education levels. M7-MFI aims to rise above these challenges by providing loans to this disadvantaged group. In addition, the organization regularly provides gender education and business consulting services, and builds homes for poor clients. With Kiva’s support, M7-MFI would like to meet existing demands from clients and expand operations.
Repayment Performance on Kiva
| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Apr 11, 2014 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $3,432,850 | $1,389,649,100 | |
| Amount of raised Inactive loans | $0 | $222,125 | |
| Number of raised Inactive loans | 0 | 83 | |
| Amount of Paying Back Loans | $737,125 | $149,645,325 | |
| Number of Paying Back Loans | 297 | 196,711 | |
| Amount of Ended Loans | $2,695,725 | $1,239,781,650 | |
| Number of Ended Loans | 1,120 | 1,602,813 | |
| Delinquency Rate | 96.81% | 12.32% | |
| Amount in Arrears | $309,944 | $11,556,424 | |
| Outstanding Portfolio | $314,884 | $93,809,072 | |
| Number of Loans Delinquent | 297 | 75,002 | |
| Default Rate | 0.16% | 1.75% | |
| Amount of Ended Loans Defaulted | $4,389 | $21,702,685 | |
| Number of Ended Loans Defaulted | 6 | 52,581 | |
| Currency Exchange Loss Rate | 0.00% | 0.38% | |
| Amount of Currency Exchange Loss | $0 | $5,291,386 | |
| Refund Rate | 1.39% | 0.59% | |
| Amount of Refunded Loans | $47,875 | $8,230,675 | |
| Number of Refunded Loans | 16 | 8,220 |
Loan Characteristics On Kiva
| This Field Partner | All Kiva Partners | ||
| Loans to Women Borrowers | 95.28% | 76.51% | |
|---|---|---|---|
| Average Loan Size | $487 | $392 | |
| Average Individual Loan Size | $0 | $608 | |
| Average Group Loan Size | $2,429 | $1,757 | |
| Average number of borrowers per group | 5 | 7.8 | |
| Average GDP per capita (PPP) in local country | $5,600 | $5,756 | |
| Average Loan Size / GDP per capita (PPP) | 8.69% | 6.81% | |
| Average Time to Fund a Loan | 13.29 days | 7.14 days | |
| Average Dollars Raised Per Day Per Loan | $36.61 | $54.93 | |
| Average Loan Term | 13.66 months | 11.37 months |
Journaling Performance on Kiva
| This Field Partner | All Kiva Partners | ||
| Total Journals | 1,241 | 846,968 | |
|---|---|---|---|
| Journaling Rate | 89.38% | 43.38% | |
| Average Number of Comments Per Journal | 0.00 | 0.03 | |
| Average Number of Recommendations Per Journal | 0.00 | 0.76 |
Borrowing Cost Comparison (based on 2017 data)
| This Field Partner | Median for MFI's in Country | All Kiva Partners | ||
| Average Cost to Borrower | 26% APR | 22.00% PY | 26.14% PY | |
|---|---|---|---|---|
| Profitability (return on assets) | 2.06% | 7.2% | -2.29% | |
| Average Loan Size (% of per capita income) | N/A | 11.00% | 12.52% |
Country Fast Facts
- Country:
- Vietnam
- Capital:
- Hanoi
- Official Language:
- Vietnamese (official), English, some French, Chinese, and Khmer, Mon-Khmer, Malayo-Polynesian
- Population:
- 93,421,835
- Avg Annual Income:
- $5,600
- Labor Force:
- agriculture: 48%, industry: 21%, services: 31%
- Population Below Poverty Line:
- 17.20%
- Literacy Rate:
- 94.50%
- Infant Mortality Rate (per 1000):
- 18.99 deaths
- Life Expectancy:
- 75.46 years