Microcredit is one of the core activities of the Thien Chi Center. It aligns perfectly with the mission to improve the capacity of the communitirs to solve their own problems. The loans are granted after a complete study of the families situation. The money is dedicated to create more money. Household with a plan to use the capital are more likely to receive a loan. Training programs are also put in place, so that people can learn how to properly use the money. It also helps reducing the risk of the investment.
Each loan is granted for one cycle of 6 months, and a Thien Chi employees visits the family every months to make sure that no problem emerges. Thien Chi also works closely with the local authorities and the village workers, who keep them updated on the situation. Everything is done to ensure the success of the loan.
The first loan is always of a smaller amount, from 2,000,000 VND to 5,000,000 VND (80$ to 200$) depending on the model. After each cycle, a decision has to be made to renew the loan, and if it is the case, to increase it. The ultimate goal is that the average income of each person in the family exceeds 1,200,000 VND (or 1,500,000 VND, depending on the area). This corresponds to around 2$ per person per day. It gives credit to their models in the eyes of the traditional banks. Although Thien Chi does not provide loans anymore, they rely on the village workers to keep them updated. In case the family falls back under the 1,200,000 VND limit, Thien Chi can consider getting them back into the program.