New initiative: VBSP introduces loan program for STEM studies, backed by the government

The Vietnam Bank for Social Policies (VBSP) has launched a new student loan scheme, offering financial support to eligible students studying in the fields of science, technology, engineering, and mathematics (STEM). This initiative aims to aid students in covering tuition fees, living expenses, and other study-related costs.

To qualify for the loan, students must have graduated from high school and meet the eligibility criteria as reviewed and approved by VBSP. Each year, students are required to provide an updated declaration form as specified.

The application process involves completing an information declaration form, obtaining confirmation from their educational institution, and submitting the required documents to VBSP. For loans up to VND500 million, no collateral is required. However, for loans exceeding VND500 million, collateral must be provided.

VBSP facilitates lending through households, with a representative named as the borrower. The maximum loan amount per student covers all remaining payable tuition fees, and a maximum of $200 per month for living expenses and other educational costs.

The loan term consists of three phases: disbursement, a grace period, and repayment. The repayment term will be divided into instalments, and borrowers may repay their loans early without incurring any penalties. Within 12 months from completing their academic course, borrowers must make their first repayment.

The regulated annual interest rate is 4.8%, and the overdue interest rate is calculated at 130% of the standard lending rate. The repayment term is determined by VBSP and may not exceed the disbursement period.

VBSP's activities are not limited to Vietnam. In Lao Cai, their efforts are contributing to the province's sustainability and self-sufficiency. Currently, VBSP is working with a high-ranking delegation from Cuba, further expanding their reach and impact.

In certain cases, the student may apply for the loan in their own name. Eligible fields of study include life sciences, natural sciences, computer science and IT, engineering and engineering technologies, architecture and construction, manufacturing and processing, mathematics and statistics, fintech, and other fields in key technological sectors as regulated by law.

VBSP's credit growth and disbursement are strong, aiming to support national development goals and expand inclusive lending by 2025. This student loan scheme is just one of the many ways VBSP is making a difference in the lives of many students in Vietnam.