Prime Ministerial Decision No. 50/2026/QD-TTg, issued on November 2, sets interest rates at the same level as those applied to loans for poor households.
The policy covers Vietnamese citizens facing financial difficulties who are studying at universities, other higher education institutions or vocational training establishments operating legally in Vietnam.
Eligible borrowers fall into three categories.
The first includes students who have lost both parents, whose parents are unable to work, lack legal capacity or are missing, or who have lost one parent while the other falls into one of these circumstances.
The second covers students from poor, near-poor or average-income households as defined by government standards.
The third includes students whose families face financial hardship due to accidents, illness, natural disasters, fires or epidemics during their studies.
Students in the first and third categories must obtain confirmation from commune-level authorities, with those in the third category required to renew their certification annually.
The Vietnam Bank for Social Policies will determine individual loan amounts based on students' financial needs and tuition fees, subject to the VND 8 million monthly ceiling.
Borrowers will not have to repay principal or interest during their studies, although interest will accrue from the first disbursement until the loan is fully repaid.
The first repayment will be due 12 months after graduation. Borrowers may repay early without incurring penalties.
Loans will generally be issued through households, with a household representative responsible for borrowing and dealing with the bank.
Students may borrow directly if their household has no other member aged 18 or above, or if remaining members are unable to work, lack legal capacity or are legally declared missing.
First-year students must provide an admission notice or confirmation from their institution. From the second year onwards, annual enrolment confirmation will be required for further disbursements.
Loan disbursements will be suspended when students temporarily leave their studies, defer their enrolment or withdraw or are expelled.
The new decision replaces Decisions No. 157/2007/QD-TTg and No. 05/2022/QD-TTg.
Loan agreements signed before January 1, 2027 will remain valid under their existing terms, while the new maximum loan amount will apply to disbursements made from that date.
