Micro finance operations: The case of Tien Giang

Abstract

The paper finds that there exist the differences in operational indicators among micro finance institutes in Tien Giang.
Operating in the same locality, the same lending scale, but the NPL ratio of Mekong Organization of Micro-finance
(MOM) is much lower than that of Viet Nam Bank for Social Policies (VBSP). The causes of these differences are mainly
from institutional differences among these micro finance organizations. The informal organizations with higher interest
rates, compulsory savings, and lower instalment lending levels, still attract more customers and increase outstanding
loans and deposits.