Preferential credit policy aids STEM students in studying with peace of mind

The Prime Minister issued Decision No. 29/2025/QĐ-TTg (Decision No. 29) dated August 28, 2025, regarding credit support for pupils, students, master’s candidates, and doctoral researchers in the fields of science, technology, engineering, and mathematics (STEM). One of the significant breakthroughs of this policy is the increase in the maximum loan amount to ensure that students' educational and living needs are adequately met.

Vo Trong Hoa, Deputy Director of Dong Nai-based VBSP

A reporter from Dong Nai Newspaper interviewed VO TRONG HOA, the Deputy Director of the Vietnam Bank for Social Policies (VBSP) branch in Dong Nai province (Dong Nai-based VBSP) about the key new provisions of Decision No. 29.

*How is Decision No. 29 being implemented at the Dong Nai-based VBSP?

-Immediately after the Prime Minister issued Decision No. 29, following the direction of the VBSP and relevant professional guidance documents, the Dong Nai-based VBSP promptly organized staff training and collaborated with educational institutions and local authorities to disseminate information to pupils, students, parents, and the public. Simultaneously, we have begun to finalize the documents necessary for disbursing loans under the new policy starting from September 2025. Through surveying loan demand, we have proposed that the VBSP allocate approximately 20 billion VND in capital for early disbursement during this period.

Officers of the Vinh Cuu-based VBSP visit the family of Mai Tien Huu (Tri An commune) whose two children are receiving loans for their studies. Photo: Kim Lieu

This is a groundbreaking and practical policy. The Dong Nai-based VBSP has collaborated with borrowers to negotiate loan amounts tailored to each specific case, which helps optimize capital use while alleviating financial pressure on learners.

With high loan limits, low interest rates, flexible repayment terms, and no collateral needed for loans under 500 million VND, the new credit policy under the Decision No. 29 not only offers practical support for learners but also aids in the development of high-quality human resources, contributing to socio-economic progress in the era of national advancement.

* What are the new and outstanding features of Decision No. 29 compared to previous credit programs?

The first highlight is that the loan amount is higher and more flexible. Specifically, students can borrow the entire tuition fee after deducting scholarships or other financial aid. Additionally, they may borrow up to 5 million VND per month to cover living expenses and other study-related costs.

For instance, if the tuition fee is 10 million VND per month, the total monthly loan can amount to 15 million VND. This comprehensive support enables the learners to not only cover educational expenses but also stabilize their living conditions, allowing them to concentrate fully on their studies and research.

In recent times, the Dong Nai-based VBSP has successfully implemented over 20 policy credit programs, with a total outstanding loan balance exceeding 11.5 trillion VND. Among these, the outstanding loan program for pupils and students accounts for more than 1.4 trillion VND, benefiting over 21,900 borrowers.

* Could you please share notable incentives are offered regarding the interest rate and lending conditions under Decision No. 29?

-The lending interest rate under Decision No. 29 is 4.8% per year, significantly lower than current commercial rates. Notably, during the study period, borrowers are not required to pay either principal or interest.

After graduation, students receive a 12-month grace period during which they are not obligated to begin repayment, allowing them time to stabilize their lives and secure employment. The repayment period is structured to be flexible, with a maximum duration equal to the loan disbursement period, divided into multiple installments to alleviate financial pressure.

Additionally, loans under 500 million VND do not require collateral, creating favorable conditions for most learners.

* Could you please explain in more detail who is eligible to borrow and what the conditions are to access this source of funding?

-Eligible borrowers include pupils, students, master's candidates and postgraduate researchers who are Vietnamese citizens in pursuit of STEM programs at universities or vocational education institutions within the national education system that are legally established and operating under the provisions of Vietnamese law. Specific training fields and sectors consist of life sciences, natural sciences, computer and information technology, technical technology, engineering, architecture and construction, manufacturing and processing, mathematics and statistics, financial technology, and others.

Regarding loan eligibility requirements: For first-year students, they must have a "fair" or higher academic rating for all three years of high school, or an average score of 8.0 or higher in Math, Physics, Chemistry, and Biology in grade 12. For students in their second year and above, to be eligible for continued support, their average academic results of the previous school year must be “excellent” or higher in the school year immediately preceding their loan application. For Master's and doctoral candidates, they must be officially recognized by their training institutions in accordance with regulations. Each year, they are required to update their information and obtain confirmation from their schools to continue receiving disbursements.

* What is the loan process at the Dong Nai-based VBSP and what do the learners need to prepare?

The loan process is clear and easy to follow. Students fill out an information form according to the template, with confirmation from their schools. Their household representatives then contact local VBSP Savings and Credit Groups in their residential area for guidance on filling out the loan documents. Once approved, the loans will be disbursed in installments, aligned with the student’s study plan. In case there is no family member eligible to act as the borrower’s representative, that student can apply for the loan under their own name and work directly with the VBSP branch located either at their school’s location or their place of residence.

Thank you!

By: Kim Lieu

Translated by: Huyen Trang - Thu Ha