Conditions for student loans in Vietnam

Conditions for student loans in Vietnam

1. Subjects eligible for student loans in Vietnam

Article 2 of Decision 157/2007/QD-TTg stipulates who can borrow capital as follows:

Students and students with special needs studying at universities (or university equivalents), colleges, professional secondary schools, and vocational training institutions established and operating in accordance with Vietnamese law, including:

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

- Students who 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.

2. Conditions for student loans in Vietnam

Pursuant to Article 4 of Decision 157/2007/QD-TTg stipulating the loan conditions as follows:

- Students who are living in households lawfully residing in the locality where the loan is granted and fully meeting the criteria specified in Article 2 of this Decision.

- For students, first-year students must have a certificate of acceptance or a certificate of admission from the school.

- For students, from the second year onwards, must have confirmation from the school that they are studying at the school and have not been administratively sanctioned or more for the following acts: gambling, drug addiction, theft , smuggling.

3. Loan amount for students in Vietnam

Pursuant to Article 5 of Decision 157/2007/QD-TTg, stipulating the loan capital level as follows:

- Adjustment of loan amount specified in Clause 1, Article 5, Decision 157/2007/QD-TTg: The maximum loan amount is 1,000,000 VND/month/student.

- The Social Policy Bank shall stipulate a specific loan amount for students, based on the tuition fees collected by each school and the cost of living by region, but not exceeding the loan amount specified in Clause 1 of Article 5 of Decision 157/2007/QD-TTg.

- When the state's tuition fee policy changes and the cost of living fluctuates, the Bank for Social Policies shall agree with the Minister of Finance and submit it to the Prime Minister for consideration and decision on adjusting the capital level for students to get a loan.

4. Student loan repayment period in Vietnam

Article 6 of Decision 157/2007/QD-TTg stipulates the loan term as follows:

- Loan term is the period from the date the borrower starts to receive the loan until the date of repayment of the debt (principal and interest) stated in the credit contract. The loan term includes the loan disbursement period and the debt repayment term.

- The loan disbursement period is the period from the date the borrower receives the first loan to the date the student finishes the course, including the time the student is allowed to be absent from school for a definite time and have their academic results reserved (if any).

The loan disbursement term is divided into loan disbursement terms prescribed by the Bank for Social Policies or agreed with the borrower.

- Debt repayment term is the period from the date the borrower pays the first debt to the date of full repayment (principal and interest).

For training programs with a training period of no more than one year, the maximum repayment term is equal to twice the loan disbursement period; for other training programs, the maximum repayment term is equal to the maximum loan repayment term. loan disbursement.

Debt repayment term is divided into debt repayment terms prescribed by the Bank for Social Policies.

5. Application for a Student Loan in Vietnam

The application file for student loans specified in Clause 4, Section I of the Instruction 2162A/NHCS-TD in 2017 includes:

- Certification

- Admission notice (for first-year students);

- List of households with students applying for loans from the Bank for Social Policies;

- Minutes of the meeting of the Savings and Loans Group (the borrower must join and be a member of the Savings and Loan Group in the village where the household is living, and be considered by the group to qualify for a loan);

Notification of loan approval results

Certification

Note: Before graduation, the Management Board requires students who have borrowed money and still owe the Bank for Social Policies up to that time to make a written commitment to repay the loan (according to form 05/TDSV attached). is responsible for notifying the school and family of the address of the working unit when they have a job (with a labor contract), have income sources, and are responsible for paying debts with their families.

Debt payment commitment letter​

Ngoc Nhi

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