The Suspension of the Credit Program for the Purchase of Computers and Devices to Support Online Learning for Disadvantaged Students in Vietnam

The suspension of the credit program for the purchase of computers and devices to support online learning for disadvantaged students in Vietnam

On November 20, 2023, the Prime Minister of Vietnam issued Resolution 195/NQ-CP in 2023 on the suspension of the Credit Program for Disadvantaged Students to Purchase Computers and Devices to Support Online Learning at Decision 09/2022/QĐ-TTg of April 4, 2022.

According to Resolution 195/NQ-CP in 2023, the Prime Minister of Vietnam approved the following on the credit program for students:

Approval of the suspension of the credit program for disadvantaged students to purchase computers and devices to support online learning at Decision 09/2022/QĐ-TTg of April 4, 2022 of the Prime Minister of Vietnam.

Therefore, the credit program for disadvantaged students to purchase computers and devices to support online learning will be suspended.

The Suspension of the Credit Program for the Purchase of Computers and Devices to Support Online Learning for Disadvantaged Students in Vietnam - Source: Internet

What are procedures for applying for student loan for households in Vietnam?

Section 2 of Instruction 2162A/NHCS-TD in 2007 stipulates that the procedures for student loan for households are as follows:

Step 1: Submit the loan application

The borrower writes a loan application form and attaches a confirmation letter from the school or an admission letter to the Savings and Loan Group.

Step 2: The Savings and Loan Group reviews the loan application

Upon receiving the loan application, the Savings and Loan Group will hold a meeting to review the application, check the information on the loan application form, and verify that the borrower meets the eligibility criteria for the government loan program.

If the borrower is not a member of the Savings and Loan Group, the Savings and Loan Group at the currently active village will organize the admission of additional members or establish a new group if it meets the conditions. If there are only 1 to 4 new borrowers, they will be added to the old group even if the group has 50 members.

The Savings and Loan Group will then compile a list of households applying for a loan from the Social Policy Bank, attach the loan application form, the confirmation letter from the school or the admission letter, and submit it to the commune-level People's Committee for confirmation.

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

Step 4: Upon receiving the loan application documents from the Savings and Loan Group, the Social Policy Bank officer assigned by the Director will check and verify the legality and validity of the loan application documents, and submit them to the Credit Department Head and Director for approval. After approval, the Social Policy Bank will issue a notification of the loan approval results to the commune-level People's Committee.

Step 5: Loan disbursement

The commune-level People's Committee will notify the commune-level political-social organization and the Savings and Loan Group to notify the borrower to come to the commune-level transaction point or the head office of the Social Policy Bank where the loan is granted to receive the loan.

What is the level of loan and interest rate for students in Vietnam?

Article 5 of Decision 157/2007/QĐ-TTg (amended by Clause 2, Article 1 of Decision 05/2022/QĐ-TTg) stipulates the following loan amounts for students:

Loan amount

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

2. The Social Policy Bank shall specify 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 policy changes and the cost of living fluctuates, the Social Policy Bank shall coordinate with the Minister of Finance to submit to the Prime Minister for consideration and decision on adjusting the loan amount.

Article 7 of Decision 157/2007/QĐ-TTg stipulates the following interest rates for student loans:

Interest rate

1. The preferential interest rate for student loans is 0.5% per month.

2. The interest rate for overdue loans is calculated at 130% of the lending interest rate.

Therefore, from 2023, students will be able to borrow up to VND 4,000,000 per month per student, and the interest rate for student loans is 0.5% per month.

The Social Policy Bank shall specify the specific loan amount for students based on the tuition fees of each school and living expenses by region, but not exceeding the specific loan amount.

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