Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — December 10, 2021

After two years of working with an external debt collection agency to recover lenders’ outstanding funds, Kiva and the collection agency have determined that the outstanding balance of $184,524.96 is unrecoverable. SEDA has not been able to obtain the Microfinance license needed to transfer funds internationally that is now required because of a previous change in regulations.

Overall, Kiva has spent about 6 years attempting to work with SEDA to recover the funds, and in that time we have only been able to recover $7,000. Given the situation, we have decided to default the unrecovered funds and officially end our partnership with SEDA. The $7,000 of recovered funds have been applied to lender accounts on a pro rata basis. We thank lenders for their patience and understanding during this process.

Status update — March 4, 2021

Kiva continues to work with an external debt collection agency to recover lenders’ outstanding funds. The local agency is in contact with SEDA in Vietnam and is exploring options for repayment. This is a slow and complicated process as SEDA has yet to obtain the new license needed to transfer funds internationally that is now required because of the previous change in regulations. We appreciate your patience throughout this process.

Status update — May 21, 2019

Kiva has contracted the services of an external debt collection agency to help retrieve lenders’ outstanding balance with SEDA. This agency will make contact with the partner soon and we will provide more details on this page as we know more about the likelihood of recovery of funds.

Status update — December 12, 2017

Kiva staff visited SEDA in September 2017 and plan to visit again in 2018. We continue to be in touch with SEDA to gain updates on the institution's health and progress toward their transformation to a non-banking financial institution, which is necessary for their ability to repay funds owed to Kiva. 

Despite the Vietnamese government setting up a process for organizations working in microfinance sector to become non-banking financial institution and obtain the micorfinance license, the timeline and requirements don't seem clear. While SEDA is going through this process, at the moment it's uncertain how long it will take and if they will obtain a positive outcome. Because this license needs to take place before SEDA is able to pay Kiva, at the moment we don't know when SEDA may be able to repay Kiva for the amount owed to lenders. We will continue to monitor the situation and share more information on this page as the situation develops.

It's important to note that SEDA continues strengthening as an institution, expanding their operations and reach, and Kiva money is being recycled to give new loans to support Vietnamese entrepreneurs. So even if the money is not yet able to be repaid back to lenders, it is being helpful to support SEDA's mission and its impact.

Status update — May 11, 2017

Kiva staff visited SEDA in April 2016 and plan to visit again in 2017. We continue to be in regular touch with SEDA to gain updates on the institution's health and progress toward their transformation to a non-banking financial institution, which is necessary for their ability to repay funds owed to Kiva. Because the Vietnamese government hasn't provided a timeline for updates to the regulations around microfinance institutions, at this time we don't know when SEDA may be able to repay Kiva. We will continue to monitor the situation and update lenders as we have more information.

Status update — August 26, 2016

Kiva staff visited SEDA in April 2016 and continue to be in regular touch with SEDA to gain updates on the institution's health and progress toward their transformation to a non-banking financial institution, which is necessary for their ability to repay funds owed to Kiva. Because the Vietnamese government hasn't provided a timeline for updates to the regulations around microfinance institutions, at this time we don't know when SEDA may be able to repay Kiva. We will continue to monitor the situation and update lenders as we have more information.

Status update — January 25, 2016

SEDA has applied for a change of status to transform from a nonprofit organization into a non-banking financial institution, but has yet to be approved. The Vietnamese government is currently revising its microfinance regulations, which may change the process of transformation and cause this process to take extra time. Kiva staff met with SEDA staff and a representative of the Vietnamese Microfinance Working Group in October 2015, and will continue to monitor this situation and share updates with lenders as the situation changes. 

Status update — July 9, 2015

SEDA has been unable to remit funds to Kiva because the Vietnamese government has updated regulations for NGOs, and NGOs are no longer allowed to transfer funds out of the country. Upon learning of this issue in November, 2014, Kiva paused fundraising for new loans to SEDA borrowers. SEDA has already started the process to convert from an NGO to a non-banking financial institution which should resolve the situation. Once this change is completed, SEDA plans to send funds to Kiva, at which time Kiva will consider resuming fundraising for loans to SEDA borrowers.

Status update — February 4, 2015

SEDA is currently behind on repaying funds owed to Kiva lenders. The organization has encountered unexpected delays in the repayment process waiting for approval from the central bank in Vietnam. We thank lenders for their patience while SEDA works to overcome this barrier. Kiva will continue to actively monitor the situation and follow up regularly in an effort to recover any and all payments due to lenders.

Partner description: 

Since 2004, the Center of Small Enterprise Development Assistance (SEDA), began supplying micro-finance services to low income and disadvantaged people in rural areas of Hanoi and the northern provinces of Vietnam through its Binh Minh Micro-Finance Program (Binh Minh). As of 2008, Binh Minh has served over 4,425 clients. Approximately 97% of the loans made are to women and close to 70% of the total loans are made to low income families.

SEDA’s driving vision is to create “a society without poverty” and improve the living standards of the community by providing four main services: (1) market surveys of areas of need and expansion; (2) credit to low income clients; (3) investment opportunities such as savings and insurance; and (4) business development training and consultations to clients.

 Four different types of loans are available to low income clients:

• Emergency Loans (2-5 months loan duration)

• Short-term Loans (6-12 months loan duration)

• Average Loans (12 months loan duration)

Loan sizes range from 500,000 VND to 9,500,000 VND. The loan size increases with the loan cycle at a flat interest rate from 0.88% to 1.02% per month. Clients repay their loans on a weekly basis.

Binh Minh’s mission is to “become one of the leading financially self-sufficient Micro-Finance Institutions in Vietnam to improve the living standards, life & social skills, and reduce risk for households, especially women and low-income persons by providing appropriate, convenient and friendly micro-finance products and services to a wide market with professional staff.” Its operational self-sufficiency ratio increased from 43% in 2005 to 98% in 2008. As of 2009, Binh employs of 31 staff persons working in 3 branch offices under the direction of 2 regional offices. As of 2008, Binh Minh’s loan portfolio is approximately $660,200 USD with the value of client savings at $138,253 USD. SEDA is a non-governmental, not-for-profit organization.

SEDA (through its Binh Minh Micro-Finance Program) has won several prestigious awards for its work, including the “Capital Golden Star—2008” Award for Micro-finance Products from the Vietnam Young Entrepreneurs Organization, the “Thang Long Young Entrepreneurs—2007” Award approved by the Chairman of Hanoi People’s Committee; and the “Good Performance Micro-Finance Institution—2007” Award conducted by Citi Foundation and Vietnam Micro-finance Working Group.

To join SEDA's lending team visit: www.kiva.org/team/fans_of_seda_and_binh_minh.

Status Update — March 2, 2011

SEDA currently has $9,097 in loans on Kiva currently in arrears, out of a total outstanding portfolio of $134,787. As a result, its delinquency rate as expressed on the Kiva website is currently 6.75%.

In late February 2011, SEDA sent $61,804 in funds collected on their Kiva loans. Once this payment has been processed and distributed to Kiva lenders, SEDA's delinquency rate as expressed on the Kiva website should fall from its current level.

We will keep this page updated with further updates as information becomes available.

Status update — March 1, 2011

The Center of Small Enterprise Development Assistance (SEDA) has been a longstanding partner of Kiva's for over three years, successfully paying back $703,350 in loans since the partnership began in October of 2007.

This partner update provides information on several actions Kiva has taken over the last few months, with respect to Kiva loans made through SEDA.