Government-backed STEM loans launched by VBSP

Government-backed STEM loans launched by VBSP

Vietnam Bank for Social Policies (VBSP) is introducing preferential loans to STEM students as part of efforts to build a stronger science and technology workforce.

Under Decision No. 29/2025/QD-TTg, signed by Deputy Prime Minister Ho Duc Phoc on August 28, the scheme provides financial support for tuition, living expenses, and other study-related costs to eligible students pursuing degrees in science, technology, engineering, and mathematics (STEM).

According to the decision, students at undergraduate, master's, or doctoral levels in STEM fields may access funding to help cover tuition fees, living expenses, and other related study costs while enrolled at higher education or vocational institutions within Vietnam’s national education system, legally established and operating under Vietnamese law.

The STEM fields specified in this decision include the following areas of study and training: life sciences, natural sciences, computer science and IT, engineering and engineering technologies, architecture and construction, manufacturing and processing, mathematics and statistics, and fintech.

VBSP loans support students across diverse fields of study

These are defined according to the Prime Minister’s regulations on the national education and training classification framework and relevant legal documents. Other fields in key technological sectors as regulated by law are also eligible.

To qualify for the loan scheme, students must have graduated from high school and meet the eligibility criteria at the time VBSP reviews and approves the loan application. Master’s candidates and doctoral researchers must be recognised as such by their higher education institutions in accordance with the law.

At the time of application, students must complete an information declaration form in line with Appendix I of the decision, obtain confirmation from their educational institution, and submit the required documents to VBSP.

For loan disbursement each year, students are also required to provide an updated declaration form as specified in Appendix II, confirmed by their institution.

The maximum loan amount per student covers all remaining payable tuition fees (after deduction of scholarships or other institutional financial support, as confirmed by the school), and a maximum of $200 per month for living expenses and other educational costs.

Based on these provisions, VBSP will negotiate and agree with each borrower on the specific loan amount to be approved for disbursement.

The regulated annual interest rate is 4.8 per cent. The overdue interest rate is calculated at 130 per cent of the standard lending rate.

The loan term consists of three phases: disbursement, from the first instalment until the end of the course (including approved temporary leave); a grace period from graduation until the first repayment; and the repayment period.

Within 12 months from the date the student completes their academic course, borrowers must make their first repayment of both principal and interest. Borrowers may also repay their loans early without incurring any prepayment penalties.

The repayment term is determined by VBSP and may not exceed the disbursement period, excluding any approved academic leave.

The repayment term will be divided into instalments, with the specific repayment schedule set by VBSP.

VBSP also facilitates lending through households. A representative of the student's household will be named as the borrower and will transact directly with VBSP units.

In cases where no household member is 18 years or older, or where remaining members are unable to work or lack full legal capacity, the student may apply for the loan in their own name.

For loans of up to VND500 million ($20,000) per student, no collateral is required. For loans exceeding VND500 million, collateral must be provided in accordance with laws on securing financial obligations and VBSP’s internal regulations.

VIR