In response to recent natural disasters and floods that have caused heavy damage to people and properties, in order to promptly support customers to overcome difficulties and restore production and business after storm no. 3 (storm Yagi), Tinh Thuong One member Limited liability Microfinance institution (TYM) has adjusted lending interest rates down from September 10, 2024.
Specifically, from September 10, 2024, the interest rate of TYM’s loan “Loan for Disaster Risk Recovery” will be reduced to 0.1%/week (for loans repaid weekly) and 0.4%/week (for loans repaid every 4 weeks). Thus, this loan product has decreased from 3.9% – 4.1%/year compared to the previous lending interest rates. For clients who need to avail loans, TYM will create the best conditions for early appraisal, approval and disbursement of loans (TYM staff will come to clients’ houses to assess loans, support in completing loan applications, guide the installation of the TYM mobile app to track the loan schedule and how to repay the loan through their accounts).
Regarding this product, Mr. Phung Dinh Kien, Deputy General Director of TYM shared: “We are ready to do everything possible to support women and families to overcome the risks of natural disasters. Currently, TYM staff at the grassroots level have promoted the product through local information channels and TYM’s existing customer groups. Hopefully, TYM’s efforts will contribute to helping women and their families overcome difficulties soon.” Reducing interest rates on loans to support disaster risk recovery is one of TYM’s specific actions to support customers to overcome difficulties, facilitate access to loans, promote economic recovery after storms, and encourage investment activities and production development in the post-disaster period. This is also one of the specific and timely solutions that TYM implements according to the policy of the State Bank of Vietnam to support customers to overcome the consequences of storm no. 3.
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The Disaster Risk Recovery Loan was launched by TYM in 2018 after TYM realized that natural disaster risks and climate change in recent years in Vietnam have become extremely urgent issues, especially when the impacts of harsh weather events and climate change have caused severe damage to the economy, society and people. TYM’s current customers mainly have their main income from agricultural, forestry and fishery activities, which are completely dependent on climate, weather and nature, so they suffer a lot of losses when storms, floods and natural disasters occur. In particular, poor, low-income and disadvantaged women’s families are the most severely affected. They lack resources and information to proactively respond to climate change and natural disasters. Moreover, when they have experienced the negative impacts of climate change, their family’s economic recovery is also more difficult and takes longer than other subjects. |