TYM Fund

Kiva and TYM Fund have agreed to end their partnership after more than $1.5 million in loans raised. This Lending Partner has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank TYM Fund for the years of collaboration and wish them success in their future endeavors.
   
Partner Description:

TYM Fund -- which stands for "Tao Yeu May,” or “people loving people” in Vietnamese -- is Vietnam’s first licensed microfinance institution. Founded in 1992 by the Vietnamese Women’s Union to put the government’s poverty alleviation program into action, TYM aims to replicate the Grameen Bank’s model of micro-lending.

With financial and technical support from a number of international organizations, including CARD, the Ford Foundation, CORDAID, Cashpor and Oxfam America, TYM has grown in its 20 years of operation to operate in 10 North Vietnamese provinces. Having assisted more than 55,000 women, the TYM Fund has contributed to the Vietnamese Women’s Union’s objectives of improving women’s economic development, living conditions, and general equality.

TYM’s unique lending approach:

TYM recruits women with incomes below the Vietnamese poverty line to become members of their local TYM centers. Members form groups of 5 that undergo basic business and financial training before becoming eligible to receive loans.

Once they are qualifed, these groups receive loans with very low interest rates that are disbursed cyclically, up to a maximum of US$1,250. TYM also requires members to contribute to a compulsory savings account and to a Mutual Assistance Fund to support other members’ emergency expenses. The organization plans to eventually formalize this account as a standard insurance fund. Additionally, TYM offers loans with longer than average repayment periodsfor members looking to start new and long-term businesses like livestock raising or handicrafts.

All TYM services are provided at weekly or monthly center meetings, where loan applications are discussed and approved and repayments and savings collected. The center also serves as a meeting place for members to convene and discuss business development, and for staff to conduct educational trainings on family, gender, and health issues.

TYM members participate in business development trainings.

Status Update - June 2, 2010

TYM has requested to pay its current and late loans to Kiva on June 30, 2010 in order to manage cashflows inside the organization. Kiva is working with TYM to ensure more timely payments in the future.

Status Update - May 26, 2010

TYM’s delinquency rate is high for the current month. TYM has faithfully repaid Kiva in the past, but occasionally 30 to 60 days late. Kiva is working with TYM to facilitate more timely repayments. Additionally, TYM has slowed down its fundraising with Kiva since September 2009.