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Village savings and loan associate (VSLA) – a flexible social loan fund for poor women

From 22-28 March 2017, the Centre for Sustainable Development (SRD) successfully conducted training sessions on village saving and loan associate (VSLA) at project areas in Hai Lang district, Quang Tri province. This activity is within the scope of project titled "Community for disaster risk reduction" period 2016-2017, funded by Caritas Australia. The project aims to enable the vulnerables of 3 disaster-prone communes in Hai Lang district including communes of Hai Chanh, Hai An and Hai Vinh to better cope with disaster through strengthened resilience and livelihoods.
Nearly 70 women participants from 3 communes attended the training. VSLA model significantly creates a local pool of capital which is accessible for the poor, with simple procedure, low interest rate, and therefore is suitable for medium-small scale of business activities. After being introduced and fully understood about this model, all the participants agreed to set up VSLA groups in their villages. As a result, the group regulations were discussed and finalized together with 3 management teams voted. An initial amount of about VND 2.7000.000/each group has been mobilized in the first group meeting and first four members have been loaned for livelihoods improvement.
"VSLA model is a useful funding source for poor women to improve their family economics and bring the women altogether for mutual support in poverty elimination", shared by Mrs. Phan Thi Hue, the leader of VSLA group of My Thuy village, Hai An commune.
Mrs. Nguyen Thi Binh, Chairwoman of Hai Chanh Women's Union suggested: "Since this a suitable model for poor women to practice saving and loan for households' income-generation activities, more training on VSLA should be conducted for further introduction and possible replication".
In the coming time, SRD will continue to closely work with the People's Committees of these 3 communes to provide further support with running the VSLA groups for possible replication and diversification of target groups as well.

Some of the photos taken during the training

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VSLA group of Hai An commune started their first meeting

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One of the first members received the loan from VSLA of My Thuy village, Hai An commune

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The management team of VSLA group of Cau Nhi village, Hai Chanh commune in their first meeting


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