What is the maximum amount of student loan per month in Vietnam?

What is the maximum amount of student loan per month in Vietnam?

Pursuant to Article 5 of Decision 157/2007/QD-TTg amended by Clause 2, Article 1 of Decision 05/2022/QD-TTg, the loan amount is regulated as follows:

Loan amount:

1. The maximum loan amount is VND 4,000,000/month/student.

2. The Social Policy Bank stipulates the specific loan amount for students based on the tuition fees of each school and living expenses by region, but not exceeding the loan amount specified in Clause 1 of this Article.

3. When the State's tuition fee policy changes and living expenses fluctuate, the Social Policy Bank shall coordinate with the Minister of Finance to propose to the Prime Minister for consideration and adjustment of the loan amount.

Thus, the maximum student loan amount is VND 4,000,000/month/student.

The specific loan amount for each student will be regulated by the Social Policy Bank based on the tuition fees of each school and living expenses by region, but not exceeding the maximum loan amount of VND 4,000,000/month/student.

What is the maximum amount of student loan per month in Vietnam? (Image from the Internet)

What are the conditions for getting a student loan in Vietnam?

According to Article 4 of Decision 157/2007/QD-TTg, the conditions for students to get a loan are as follows:

- Students living in households with legal residence at the local lending place meeting the criteria specified in Article 2 of Decision 157/2007/QD-TTg.

- For first-year students, there must be a notice of admissions or a confirmation of admission from the school.

- For students from the second year onward, there must be a confirmation from the school that they are currently studying at the school and not being administratively sanctioned or above for the following behaviors: gambling, drug addiction, theft, smuggling.

Which students can get a student loan in Vietnam?

According to Article 2 of Decision 157/2007/QD-TTg amended by Clause 1, Article 1 of Decision 05/2022/QD-TTg, the subjects eligible for student loans are those who are in difficult circumstances studying at universities (or university equivalents), colleges established and operating under the provisions of Vietnamese law, including:

- Students who are orphans of both parents or only father or mother but the remaining parent is unable to work.

- Students who are members of households belonging to one of the following categories:+ Poor households according to the standards stipulated by law.+ Near-poor households according to the standards stipulated by law.+ Households with an average living standard according to the standards stipulated by law.

Application and procedures for student loans in case students borrow through households in Vietnam

Pursuant to Subsection 1, Section 2 of Guideline 2162A/NHCS-TD in 2007 amended by Point a, Clause 3 of Official Dispatch 1485/NHCS-TDSV in 2018, the application and loan process at the Social Policy Bank are as follows:

* Loan application

- Loan request form cum capital utilization plan with confirmation from the school (original) or admission notice (original or copy from the original book or certified copy).

* Loan process:

Step 1: The borrower writes a loan request form with confirmation from the school or admission notice and submits it to the Savings and Credit Group.

Step 2: The Savings and Credit Group receives the borrower's application, holds a group meeting to consider lending, checks the factors on the loan request form, matches the applicant with the loan policies of the Government of Vietnam. If the borrower is not yet a member of the Savings and Credit Group, the current active Savings and Credit Group in the village will admit additional members or establish a new group if conditions are met.

If there are only 1 to 4 new borrowers, they will be admitted into the old group even if the group already has 50 members. Then make a list of households requesting loans from the Social Policy Bank, attach the loan request form, confirmation from the school, or admission notice, and submit it to the commune-level People's Committee for confirmation.

Step 3: After receiving confirmation from the commune-level People's Committee, the Savings and Credit Group sends the entire loan application to the Social Policy Bank for loan approval procedures.

Step 4: The Social Policy Bank receives the application from the Savings and Credit Group, the bank officer assigned by the Director will check and verify the legality and validity of the loan application, then submit it to the Credit Department Head (Credit Team Leader) and Director for loan approval. After approval, the Social Policy Bank issues a loan approval notice to the commune-level People's Committee.

Step 5: The commune-level People's Committee notifies the social-political organization at the commune level (the lending trustee unit) and the Savings and Credit Group to inform the borrower to go to the transaction point at the commune or the Social Policy Bank office for disbursement.