Lending credit is one of the policies of the State for students (HSSV) with difficult circumstances, providing partial support to cover study expenses, purchase books and daily living expenses for HSSV during their time attending universities, colleges, professional intermediate schools, and vocational training institutions.
Article table of contents
Eligible Borrowers:
As per Decision 157/2007/QD-TTg of the Prime Minister of the Government of Vietnam, the eligible students for borrowing include:
- Students who are orphans of both parents or have lost one parent with the remaining parent unable to work.- Students who are members of households falling into one of the following categories:- Poor households according to the standards stipulated by law;- Households with an average income per capita of up to 150% of the average income per capita of poor households as stipulated by law.- Students whose families face financial difficulties due to accidents, illnesses, natural disasters, fires, or epidemics during their study period. Specifically:- Students who are children of officials, public employees, and workers whose parent(s) have occupational accidents or occupational diseases and are receiving regular allowances must have a monthly allowance card issued by the Social Insurance organization (BHXH);- Students whose parent(s) are freelance workers not participating in Social Insurance (BHXH) and have permanent disability or reduced working capacity due to accidents or illnesses must have a health certification from a competent medical authority;- Students whose families face financial difficulties due to accidents or illnesses must have a certification from the commune-level People's Committee (UBND) about the family's economic and financial situation in the loan application;- Students whose families face financial difficulties due to natural disasters, fires, or epidemics must have a certification from the commune-level People's Committee that they are eligible for emergency assistance or food aid during the study period.
To accurately identify the eligible borrowers, the commune-level People's Committee (UBND) will organize surveys and compile lists, certifying the eligible households based on the criteria and guidelines of the Ministry of Labor, Invalids, and Social Affairs.
Verification Procedures:
- For students who are orphans of both parents or have lost one parent with the remaining parent unable to work, the commune-level People's Committee (UBND) will certify the loan application based on the list of social protection beneficiaries managed in the area according to Decree 67/2007/ND-CP.- For students who are members of poor households as per legal standards, the commune-level People's Committee (UBND) will certify the loan application based on the list of poor households managed by the commune.- For students whose families face financial difficulties due to accidents, illnesses, natural disasters, fires, or epidemics during their study period, the commune-level People's Committee (UBND) will certify the loan application based on the actual damage extent.- For households with an average income per capita above the poverty line but up to 150% of the poverty line (for rural areas: Over 200,000 - 300,000 VND/person/month; for urban areas: Over 260,000 - 390,000 VND/person/month), the commune-level People's Committee (UBND) will direct the following actions:- Conduct a survey: Using household income survey forms to determine the household income; households with an average income per capita above the poverty line but up to 150% of the poverty line will be included in a list for review.- Hold review meetings in the village, hamlet, or quarter and base the final list on the review results to request the Chairman of the commune-level People's Committee (UBND) to certify the loan applications of these households (in accordance with guidelines in Circular 04/2007/TT-BLDTBXH on the annual survey process for poor households).
Loan Methods:
The Social Policy Bank can apply one of the following two loan methods:
Method 1: Loans through households:
- A household representative directly borrows funds and is responsible for repaying the Social Policy Bank (NHCSXH);- The borrower does not need to mortgage any assets but must join and be a member of the Savings and Loans Group in their village, hamlet, or quarter where the family resides, and be deemed eligible for loans by the Group, which will compile a list and submit it to the commune-level People's Committee (UBND) for certification.- Loans from the Social Policy Bank (NHCSXH) will be partially delegated to socio-political organizations according to the current mechanism of NHCSXH.
Method 2: Students who are orphans of both parents or have lost one parent with the remaining parent unable to work borrow and repay directly at the Social Policy Bank (NHCSXH) where the school is located.
Loan Conditions:
- Students living in households legally residing in the local area where the loan is provided and meeting all the required standards;- First-year students must have a letter of admission or a confirmation letter from the school;- Students from the second year onward must have a confirmation letter from the school indicating they are attending school and must not have any administrative or higher penalties for violations of laws regarding gambling, addiction, theft, or smuggling.
Loan Amount:
According to Article 1 of Decision 07/QD-TTg dated January 5, 2016, the maximum loan amount is 1,250,000 VND/month/student.
Loan Interest Rate:
Clause 1, Article 1 of Decision 750/QD-TTg dated June 1, 2015, stipulates the preferential loan interest rate for students is 6.6%/year (equivalent to 0.55%/month).
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