Self-funding Charity Club Helps Retired Teachers Escape Poverty

For 10 years, the Club of Retired Teachers in Sa Dec City in the Mekong province of Dong Thap has looked after their own. Determined to prevent fellow teachers from falling into poverty, in 2007 the club members began offering no-interest loans. Starting with initial capital of over VND81 million, the club has since increased their loans to more than a total of VND200 million, providing support to more than 200 members. Under the club’s regulations, members are provided no-interest loans of VND5 million to VND10 million each, with loan terms lasting up to 12 months. The club has also provided members with advice, helping them identify businesses they can pursue. Nguyen Van Mot, chairman of the club and manager of the fund, says that most of the retired teachers pay back the loans within three to six months. Huynh Thi Ngon, 57, a retired teacher from Hoa Khanh Primary School in Sa Dec, says she was one of the first to receive financial support from the “charity bank”. In mid-2007, her family faced financial problems and could not pay tuition for her son who had passed the admission exam for Vinh Long Finance – Economics College. She then received a VN?4 million no-interest loan from the club to help her son attend school. Ngon has received a total of VN?16 million in loans from the club on four separate occasions. The money helped her set up a fruit stand at Sa Dec Market. “Now that my family has escaped from difficult economic conditions, I’d like to contribute something to the fund to help other retired teachers who are facing challenges,” she says. (Vietnam News Nov 27)