Circular No. 75/2006/TT-BTC guides the provision of credit to students according to Decision No. 107/2006/QĐ-TTg of the Prime Minister. The Circular stipulates principles, borrowing conditions, loan amounts, confirmation responsibilities, and implementation organization.
Scope of application
The Social Policy Bank, students with difficult circumstances, educational management agencies, People's Committees of communes and wards.
Key points
- Students may borrow funds from the Social Policy Bank to cover educational and living expenses, with a maximum loan amount of one month within an academic year and throughout their entire course of study.
- The Social Policy Bank is responsible for confirming borrowing eligibility based on criteria regarding difficult circumstances and non-violation of laws or disciplinary actions.
- Students who are exempted or granted reduced tuition fees still qualify for loans up to the maximum amount announced by the Board of Directors of the Social Policy Bank.
- The Social Policy Bank disburses borrowed funds at the beginning of each academic period and issues a promissory note to the borrower.
- Quarterly and at the end of the fiscal year, the Social Policy Bank must report on the implementation of credit to relevant agencies.
🌐 Social impact of this document
- Positive impact: Helps students with difficult circumstances access loans to cover educational and living expenses.
- Negative impact: May place financial pressure on the Social Policy Bank if credit demand exceeds planned levels.
❓ Frequently asked questions
Which students are eligible for loans?
Students with difficult circumstances such as being orphaned or belonging to poor households as defined by law are eligible for loans.
What is the maximum loan amount?
The maximum loan amount for one month within an academic year and throughout the entire course of study is published by the Social Policy Bank.
What does the Social Policy Bank confirm about the borrower?
The People's Committee of communes and wards confirms the difficult circumstances of students, and educational agencies confirm enrollment status.
How does the Social Policy Bank disburse funds?
Disbursement occurs at the start of each academic period, not exceeding the approved maximum loan amount for the academic year.
How are credit implementation results reported?
Quarterly and at the end of the fiscal year, the Social Policy Bank reports to the Ministry of Finance, the Ministry of Education and Training, the Ministry of Planning and Investment, and the State Bank of Vietnam.
Full text
CIRCULAR
Guidelines for certain contents of Decision No. 107/2006/QĐ-TTg
dated May 18, 2006 of the Government on credit for students
Implementation of Decision No. 107/2006/QĐ-TTg dated May 18, 2006 of the Government on credit for students, the Ministry of Finance guides the implementation of the following contents:
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I - GENERAL PROVISIONS
Credit for students is the State's policy to provide loans to support students to cover part of their educational and living expenses while studying in full-time regular programs at universities (or equivalent), colleges, vocational high schools, and vocational training institutions with a duration of one year or more.
1. The Vietnam Bank for Social Policies is a state-owned credit organization tasked with mobilizing funds to implement the credit policy for students according to Decision No. 107/2006/QĐ-TTg dated May 18, 2006 of the Government.
2. Principles of credit for students:
a. The Vietnam Bank for Social Policies has the responsibility to implement loans correctly to eligible recipients in accordance with the provisions of the Prime Minister's Decision and this Circular.
b. Borrowers must use the loaned funds for the intended purpose and repay both principal and interest on time as agreed in the credit contract.
II - SPECIFIC PROVISIONS
1. Planning credit for students.
a. The credit plan for students is a component of the annual poverty reduction, job creation, and credit plan assigned by the Prime Minister to the Vietnam Bank for Social Policies.
b. The content of the credit plan for students developed by the Vietnam Bank for Social Policies must clearly specify and explain the following basic indicators:
- Sources of funds for student loans (state budget funds already allocated, existing sources, additional funds raised); beginning-of-year outstanding loans; amount of loans granted during the year; amount of loans recovered during the year; end-of-year outstanding loans.
- Number of students who have received loans at the beginning of the plan year; number of students receiving loans during the plan year, categorized by province and centrally-administered city.
c) The Vietnam Bank for Social Policies implements loans to students within the scope of the poverty reduction, job creation, and credit plan and the subsidized interest rate plan approved by the competent authority. In cases where the demand for student credit increases significantly, leading to the annual poverty reduction, job creation, and credit demand exceeding the plan or the approved subsidized interest rate plan, the Vietnam Bank for Social Policies reports to the Minister of Finance to submit to the Prime Minister for consideration and decision.
2. Provisions for students from difficult circumstances.
Students from difficult circumstances studying at schools can borrow from the Vietnam Bank for Social Policies including:
a. Orphans or those whose only surviving parent is unable to work.
b. Children (biological or legally adopted) of households belonging to one of the following categories:
- Poor households as defined by law.
- Households with an average income not exceeding 150% of the average income of poor households as defined by law.
3. Students from difficult circumstances who are not eligible for loans:
a. Students penalized by administrative authorities or higher for behaviors such as gambling, drug addiction, theft, or other violations of the law.
b. Students currently under disciplinary action from their schools starting from a warning.
4. Responsibilities of certifying agencies.
Loan application files for students from difficult circumstances, as specified by the Vietnam Bank for Social Policies, must include clear certification from relevant agencies regarding the eligibility criteria and conditions for borrowing. The certification includes:
a. The People's Committee of the commune or ward where the household of the student resides is responsible for certifying that:
- The student meets the difficult circumstances criteria as stipulated in Clause 2, Part II of this Circular.
- The student has not been penalized by administrative authorities or higher during their study period as stipulated in Clause 3a, Part II of this Circular.
b. Universities (or equivalent), colleges, vocational high schools, and vocational training institutions certify that:
- The student is enrolled and currently studying in a full-time regular program with a duration of one year or more.
- The student has not been disciplined with a warning or higher during their study period at the institution as stipulated in Clause 3b, Part II of this Circular.
5. Loan Amounts.
a. The Chairman of the Board of Directors of the Vietnam Bank for Social Policies announces the loan amounts for students based on the principles:
- Compatibility with the financial capacity of the Vietnam Bank for Social Policies and the borrowing needs of eligible recipients.
- The loan amount may be adjusted over time, but the announced amount must remain stable for at least two years.
- The loan amount is specifically defined: maximum loan amount for one month; maximum loan amount for one academic year; maximum loan amount for the entire course of study.
b. Students exempted from tuition fees according to state regulations still qualify for the maximum loan amount announced by the Board of Directors of the Vietnam Bank for Social Policies.
c. The specific loan amount for each household is based on the number of students in the family, the maximum loan amount, and the remaining duration of study at the school.
6. Disbursement of Loans.
a. The Vietnam Bank for Social Policies disburses loans at the beginning of each academic term upon request from the borrower to ensure the funds are used for the intended purpose and for the correct recipient.
b. The amount of each disbursement is agreed between the borrower and the Vietnam Bank for Social Policies, but the total amount disbursed in a year cannot exceed the maximum loan amount approved for one academic year.
b. The amount disbursed each time shall be agreed upon by the borrowing entity and the Vietnam Bank for Social Policies, but the total amount disbursed in a year shall not exceed the maximum loan amount approved for one academic year for students.
c. Each disbursement of loan capital, the Vietnam Bank for Social Policies shall jointly with the borrowing entity establish a promissory note according to the model issued by the Vietnam Bank for Social Policies.
7. Reporting system.
Quarterly and at the end of the fiscal year, the Vietnam Bank for Social Policies shall prepare a report on the implementation of credit for students and trainees to be reported to the Ministry of Finance, the Ministry of Education and Training, the Ministry of Planning and Investment, and the State Bank of Vietnam. The contents of the report follow the attached form, including the following basic indicators:
- Initial outstanding loan balance at the beginning of the reporting period; amount of loans granted during the period; amount of debt recovered during the period; final outstanding loan balance at the end of the reporting period.
- Number of students and trainees who have received credit loans at the beginning of the period; number of students and trainees who received credit loans during the period, categorized by each province and centrally governed city.
III – IMPLEMENTATION ORGANIZATION
1. The Chairman of the Board of Directors and the General Director of the Vietnam Bank for Social Policies are responsible for guiding and organizing the implementation of Decision No. 107/2006/QĐ-TTg dated May 18, 2006 of the Prime Minister on credit for students and trainees and the provisions of this Circular.
2. This Circular takes effect fifteen days from the date of publication in the Official Gazette. For the outstanding balances of direct loans to students and trainees in difficult circumstances under Decision No. 51/1998/QĐ-TTg of the Prime Minister, the Vietnam Bank for Social Policies shall continue to implement according to the signed credit contracts with students and trainees.
3. Any difficulties encountered during the implementation process should be reflected to the Ministry of Finance for consideration and resolution./.
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