Status update — May 8, 2023

In 2019, the local regulator in Vietnam blocked M7 Microfinance from sending funds out of the country due to an issue with compliance with local regulations. Unfortunately, M7 has not been able to update their compliance and is still unable to send funds to Kiva. Kiva has worked with M7 to explore all options for sending funds, but there have been no viable options identified. Kiva’s assessment is that all options have been exhausted and thus the remaining $314,884.47 in outstanding amounts due to Kiva lenders has been defaulted. If Kiva is able to recover any additional funds from M7 in future, they will be applied to lenders' accounts on a pro-rata basis.

Status update — March 4, 2019

Kiva and M7 Microfinance Institution have agreed to temporarily pause their partnership. M7 is currently working to update their compliance with local regulation, during which time they will be unable to send funds out of Vietnam. Once this process is complete, M7 intends to make payment in full of all past due funds to Kiva lenders. Although the timeline for this process is hard to predict, M7 hopes to receive approval as soon as possible and we look forward to their return to the Kiva platform at that time.

Partner Description

M7-MFI is a microfinance institution in Vietnam that is focused on serving poor women and ethnic minorities in the northern part of the country.

The organization disburses loans to groups of up to five individuals in local communities. Loans are divided into three general categories, including short-term seasonal loans of six months, short loans of between nine and twelve months, and medium term loans of between 18 and 24 months. Additionally, M7-MFI provides gender education and business consulting services to clients in their homes and at group meetings.

A unique lending approach:

M7-MFI offers loans for several purposes, including obtaining capital for small businesses, assisting with education and health services, providing environmental protection, and providing access to specific resources for women.

In Vietnam, half of ethnic minorities still live under the poverty line. Challenges include gender inequality, family violence, and low education levels. M7-MFI aims to rise above these challenges by providing loans to this disadvantaged group. In­ addition, the organization regularly provides gender education and business consulting services, and builds homes for poor clients. With Kiva’s support, M7-MFI would like to meet existing demands from clients and expand operations.