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Viet Nam > TYM Fund

TYM stands for "Tao Yeu Mai" in Vietnamese, meaning "People loving People". The mission of the fund is to improve the quality and life of poor women in rural areas by providing credit and savings to groups of fund members, creating favourable conditions for their participation in economic activities, and enhancing their role in society. The TYM Fund was founded in 1992 by the Vietnamese Women's Union in order to help implement the poverty alleviation programme of the Government. It's a replication of the Grameen banking model adapted to the specific context of Vietnam. Along the process of development, TYM has received financial and technical support from a number of international organizations, such as ACT, CARD, Grameen Trust, Cashpor, Oxfam America and others. Today TYM has more than 23,000 woman members in 7 North Vietnamese provinces, from Vinh Phuc to Nghe An. During 15 years of operation, TYM Fund has contributed to Vietnamese Womens Union's objective of assisting women in economic development, improving women's living conditions and status and promoting gender equality in Vietnam. Through its program, TYM Fund has assisted more than 40.000 poor women in overcoming poverty and participating in community activities and management. Women having an income below the poverty line defined by the Vietnamese Government (currently monthly income below $ 12.50 / 200,000 VND) and meeting some other criteria (e.g. assets less than $ 1,000) form TYM Fund's target group and can become members. Five members form a Group and a Center comprises 6-8 Groups. Before becoming eligible for a loan all members have to under go a two day training on the policies and the procedures of TYM, on the role of the Centers and the communities as well as on basic business and financial skills. Loans are disbursed according to cycles, amountsstart with VND 1,000,000 up to a maximum of VND20 million (USD 1,250). Tenors range from 10 - 100 weeks. Interest rates are generally 1% per month. All TYM services are provided at the weekly or monthly Center meetings where loan applications are discussed and approved, repayments and savings collected. The Center also serves as a meeting place, where business development is being discussed, the staff of TYM and external experts provide training on family, gender, health and other issues, and where social activities are being carried out. TYM's main goal for the near future is to upgrade to a microfinance institution, licensed by the State Bank of Vietnam in accordance with the recently approved Government Decree 28. This will require training of staff, organzational improvements, installation of an adequate management information system and expansion of the branche network, especially in areas not covered by other programs. While professionalizing as institution, TYM will maintain its social commitment to helping poor women in rural areas in close cooperation with the Women's Union.