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Updated: 2020-04-15 14:36:17

Effective changes in VBSP lending schemes for job creation and disadvantaged students programs

(VBSP News) 2019 highlights changes in credit schemes of VBSP, including adjustment in loan size and loan term of a number of credit programs. The changes help remove difficulties and obstacles for the VBSP’s customers accessing the inclusive finance.

Lending program for job creation and job maintenance (Decree No. 74/2019/ND-CP dated September 23, 2019)

The implementation of credit changes helps many families continue to pursue their dreams

Regarding the maximum loan size:

- For production and business establishments:  increase from VND 1 billion/project and VND 50 million/01 employee to VND 2 billion/project and VND 100 million/01 employee;

- For laborers: increase from VND 50 million to VND 100 million/laborer.

Raising the loan size is not only timely meet the increasing loan demand in the current period, but also contribute to an effective solution of black credit combat. Many enterprises gradually shift from small-scale business operations to larger one, responding to the regional development trend. They focus on high technology application, modern production lines; value chain models orientation, which needs an appropriate investment.

Regarding the loan term: The maximum loan term is increased from 60 months to 120 months

The most updated loan term will ensure the project's effectiveness and sustainable development. It is suitable for the long-term cycle projects i.e. over 5 years or 10 years, such as raising cattle, planting rubber trees, long-term industrial crops, afforestation ... In the past, customers usually borrowed the high interest rate loans to pay bank loans by due date whereas their products have not been harvested.

Regarding the lending interest rates:

Previously, the lending interest rate was equal to the rate for the poor households program, so far it has been adjusted to the lending rate for the near-poor households program.

Such adjustment shall create a fairness among VBSP’s credit programs, such as the lending programs for poor, near poor households and job creation. On the other hand, the increase in loan interest rates will reduce the pressure on the difference between the mobilized funds and lending turnover.

The job creation program has achieved remarkable results in the past year, specifically: Lending turnover reached VND 11,546 billion; outstanding loans as of December 31, 2019 were VND 21,736 billion, with over 618 thousand active customers, attracting over 285 thousand laborers. Especially, since Decree No. 74/2019 / ND-CP came into effect, lending turnover have increased by VND 4,874 billion with an increase of 111 thousand borrowing turns.

Disadvantaged students program (Decision No. 1656/QD-TTg dated November 19, 2019)

The loan size for the disadvantaged students program increased from VND 1,500,000/month/Student to VND 2,500,000/month/Student since December 1, 2019.


VBSP teller is guiding a customer the lending procedures (Photo taken before 01 April 2020)

The adjustment of the loan size is necessary by the following reasons:

Firstly, meeting the practical needs of poor and disadvantaged households due to the increase tendency of price and tuition fees;

Secondly, creating equality of studying capacities between the poor, near poor and difficult households;

Thirdly, facilitating the vocational training institutions in order to solve the difficulties of financial autonomy implementation, as well as well prepare in high quality training;

Fourthly, building qualified human resources to the country.

By the end of 2019, the disadvantaged student lending program achieved positive results: By December 31, 2019, the outstanding loan amounted to VND 11,020 billion, with over 400,000 active customers with nearly 450 thousand students are enjoying benefits from this program. In 2020, VBSP expects an impressive result from this adjustment, which can meet the loan demands of poor households and other policy beneficiaries and supply the highly qualified resources to the country.

Source: dangcongsan.vn



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year