In what forms do students borrow money in Vietnam?

Which students are eligible for loan support in Vietnam?

According to Article 2 of Decision 157/2007/QD-TTg amended by Clause 1, Article 1 of Decision 05/2022/QD-TTg, regulations on subjects eligible for loans are as follows:

Subjects receiving loans

Pupils and students with difficult circumstances studying at universities (or university equivalents), colleges, professional secondary schools and at vocational training establishments established and operating according to the provisions of the Vietnamese law, including:

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

2. Pupils and students are members of households belonging to one of the following categories:

a) Poor households according to the standards prescribed by law.

b) Near-poor households according to the standards prescribed by law.

c) 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 their studies with confirmation from the People's Committee of the commune, ward, or town residence.

According to this Article, the students eligible for loans are:

[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-poor 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, or epidemics during their studies with confirmation from the People's Committee of the commune where they reside.

In what forms do students borrow money in Vietnam? (Image from the Internet)

In what forms do students borrow money in Vietnam?

According to Subsection 6, Section 1, Instruction 2162A/NHCS-TD 2007, instructions on student loan methods are as follows:

Lending method: Social Policy Bank applies 2 lending methods:

...

6.1. Students borrow capital through households:

- The household representative is the person who directly borrows the capital and is responsible for repaying the debt from Social Policy Bank.

- The borrower does not have to mortgage assets but must join and be a member of the Savings and Loan Group in the village, hamlet, village (collectively referred to as village) where the household is living, approved by the Group. Review loan eligibility, prepare a list of loan requests from the Social Policy Bank and send it to the commune-level People's Committee for confirmation.

- The lending of the Bank for Social Policies is partially entrusted through socio-political organizations according to the current mechanism of the Bank for Social Policies.

6.2. For students who are orphans of both parents or have only one parent but are unable to work, they can borrow capital and repay the debt directly at the Social Policy Bank where the school is located.

...

According to this Article, the policy bank currently accepts student loans using two loan methods:

- Borrow through households

- Orphans of both parents or orphans of only one parent but the other parent is unable to work can borrow capital and repay debt directly at the policy bank where the school is located.

Specifically, student loan procedures for each loan method are as follows:

[1] Borrowing through households

Step 1 : Borrowing students write a loan application with school confirmation or admission notice and send it to the Savings and Loan Team at the commune-level People's Committee.

Step 2 : The savings and loan team receives the borrower's loan application and holds a meeting to review the loan.

Step 3 : The savings and loan team prepares a list of households requesting loans with a loan application, school confirmation or admission notice to submit to the commune-level People's Committee for confirmation.

Step 4 : After receiving confirmation from the commune-level People's Committee, the Savings and Loan Group sends the entire loan application dossier to the policy bank for loan approval procedures.

Step 5 : When the policy bank receives the application, it checks and compares the legality and validity of the loan application and submits it to the Head of the Credit Department (Head of the Credit Group) and the Director for approval of the loan.

Step 6 : After approval, the policy bank prepares a notification of loan approval results to the commune-level People's Committee.

Step 7 : The Commune People's Committee notifies the commune-level socio-political organization and the Savings and Loan Group to notify the borrower to go to the transaction point in the commune or the policy bank headquarters where the loan is issued to receive money. 

[2] Students who are orphans of both parents or only orphans but the other parent is unable to work can borrow capital and repay debt directly at the policy bank where the school is located.

Step 1 : The borrower writes a loan application with confirmation from the school that he is studying at the school and is an orphan student in difficult circumstances and sends it to the policy bank where the school is headquartered.

Step 2 : Receiving the loan application, the policy bank will consider granting the loan, collect debt (principal, interest) and carry out other contents as prescribed in this document.

What are student loan documents for 02 loan methods in Vietnam?

According to Section 2 of Instruction 2162A/NHCS-TD 2007 amended by Section 1 of Official Dispatch 1852/NHCS-TDSV of 2015 and Subsection a of Section 3 of Official Dispatch 1485/NHCS-TDSV of 2018 guiding on procedures and processes Lending operations are as follows:

LOAN PROFESSIONAL PROCEDURES AND PROCEDURES:

1. For households:

1.1. Loan profile:

- Loan application cum loan use plan (form No. 01/TD) with school confirmation (original) or admission notice (original or copy from original book or copy and export Submit the original for comparison or a certified copy.

...

2. For orphan students borrowing directly from Social Policy Bank:

1. Loan documents

- Loan application cum loan use plan (form No. 01/TD) with school confirmation (original form No. 01/TDSV) or Admission Notice (original or certified photocopy).

- Certificate certifying that the student is subject to the provisions of Clause 1, Article 2 of Decision No. 157/2007/QD-TTg of the Commune-level People's Committee where the student resides before entering school (form No. 01/XNSV). For students who are only orphaned, but the remaining person is unable to work, they must have a certificate of health and illness status from a district-level health agency or higher.

...

According to this Article, student loan documents for 02 loan methods in Vietnam are prescribed as follows:

[1] Borrowing through households

- Loan application cum loan use plan or Admission Notice (original or copy from the original book or copy and present the original for comparison or a certified copy.)

[2] Students who are orphans of both parents or only orphans but the other parent is unable to work can borrow capital and repay debt directly at the policy bank where the school is located.

- Loan application and loan use plan with school confirmation or admission notice (original or certified photocopy).

- Certificate certifying that the student is an orphan of both parents or only an orphan but the other parent is unable to work

- Certification of health status and illness of parent by district-level health agency or higher

Best regards!