Vietnam: Instructions on bank loan procedures for students in 2024

Hello, Lawnet would like to answer as follows

In what cases can students get a loan at banks in Vietnam?

Bank loans for students are regulated in Article 2 of Decision 157/2007/QD-TTg (amended by Clause 1, Article 1, Decision 05/2022/QD-TTg) as follows:

Students with difficult circumstances study at universities (or university equivalents), colleges, professional secondary schools, and established and operating vocational training establishments according to Vietnamese law, including:

(1) Students who are orphans of both parents or only one parent but the other parent is unable to work;

(2) Students are members of households belonging to one of the following categories:

+ Poor households according to the standards prescribed by law.

+ Near-poverty households according to the standards prescribed by law.

+ Households have an average standard of living according to the standards prescribed by law.

(3) Students whose families encounter financial difficulties due to accidents, illnesses, natural disasters, fires, and epidemics during the study period, there is confirmation from the People's Committee of the commune, ward, or town of residence.

Therefore, students are allowed to borrow capital from banks when facing difficult circumstances, according to the above regulations.

It should also be noted that according to Article 3 of Decision 157/2007/QD-TTg, lending to students is carried out in the form of lending through households. The household representative is the person who directly borrows capital and is responsible for repaying the debt from the Bank for Social Policies;

In cases where students are orphans of both parents or only one parent but the other parent is unable to work, they will be able to borrow directly from the Social Policy Bank where the school resides.

Instructions on bank loan procedures for students in 2024 in Vietnam

According to Instruction 2162A/NHCS-TD of the Bank for Social Policies (amended by Point a, Clause 3 of Official Dispatch 1485/NHCS-TDSV), procedures for student loans at banks are carried out as follows:

- For households:

Step 1: Students write a loan application (form No. 01/TD) with school confirmation or admission notice and send it to the Savings and Loan Group;

Step 2: The Savings and Credit Group receives the loan application and conducts a meeting to review the loan, check the elements on the loan application, and compare the loan applicants with the Government's loan policy.

Form No. 01/TD: Download

In case the borrower is not yet a member of the Savings and Loan Group, the Savings and Loan Group in the currently operating village will organize the admission of additional members or establish a new Group if qualified. If there are only 1 to 4 new borrowers, additional members will be admitted to the old Team, even if the Team already has 50 members. Then prepare a List of households requesting loans from the Bank for Social Policies (form No. 03/TD), enclose the loan application, school confirmation, or admission notice, and submit it to the commune-level People's Committee for confirmation.

Step 3: After receiving confirmation from the Commune People's Committee, the Savings and Loan Team sends the loan application file to the Social Policy Bank for loan approval procedures;

Step 4: The Social Policy Bank is responsible for approving the loan application and preparing a notification of loan approval results (form No. 04/TD) to the commune-level People's Committee;

Step 5: The commune-level People's Committee notifies the commune-level socio-political organization (the unit entrusted with the loan) and the Savings and Credit Group to notify the borrower to come to the transaction point in the commune or the headquarters of VBSP where the loan is granted to receive loans.

- For students who borrow directly from the Social Policy Bank:

Step 1: Submitting a loan application to the Social Policy Bank where the school is located, including the loan application cum debt agreement (form No. 01/TD) and the school's confirmation (original) or Admission Notice (original or notarized photocopy);

Step 2: After receiving the dossier, the Bank for Social Policies considers lending, debt collection (principal, interest) and other contents according to regulations.

Please Login to be able to download