* Lending purpose:
- Providing supports to disadvantaged students to help covering partially learning costs during their courses as: tuition fees, text books, learning facilities, accommodation and transportation.
*Target clients:
- Disadvantaged students studying at Universities, colleges or vocational schools which are established and operated under regulations of the law of Vietnam, including:
+ Orphan students who are parentless, or motherless/fatherless but the remainder is incapable of working.
+ Students who are member of households belonging to one of following groups: poor households, households having maximum income per capita equaling to 150% of the standard income per capita for poor households.
+ Students whose families are facing financial difficuties causing by accidents, illness, natural calamities, fire during their learning period which is confirmed by Communal/Ward People’s Commitees of their residence places.
* Lending modes:
- Students get loans via their families:
+ The household’s representative is the borrower and the one who has responsibility to make payment.
+ Borrowers shall not have to give collateral but have to be members of Saving and Credit groups.
+ Lending is partially entrusted to mass organizations.
- Orphan students who are parentless, or motherless/fatherless but the remainder is incapable of working shall take loans and make repayment at VBSP where their schools locate.
* Preferential interest rate for early payment before the due date:
- If borrowers make payments before the due date, VBSP will discount interest payable.
* Loan size:
- Maximum loan size is: VND 800,000/month/student
* Lending interest rate:
- Loans taken before 01/05/2009 : 7.8%/year.
- Over due loans: 130% of the ordinary rate.
- Loans taken from 01/05/2009 to 31/12/2011: 2%/year.
* Principal and interest repayment:
- During disbursement period borrowers shall not have to pay principal and interest; interest is accounted from the date that borrowers receive their first loan installments to the date they finish their principal repayment.
- Borrowers shall have to pay loan principal and interest for the first time right after the students get jobs with income but not over 12 months since they finished their courses.
