Non-public preschools and primary schools can borrow loans with an interest rate of 3.3%/year to maintain their operations

(VBSP News) Deputy Prime Minister Le Minh Khai has just signed Decision No. 11/2022/QD-TTg on credit for non-public preschool and primary education institutions affected by the COVID-19 pandemic.

The maximum loan size is VND 80 million/non-public preschool educational institution; up to VND 200 million/ non-public primary school

According to Ms. Ngo Thi Minh, Deputy Minister of the Ministry of Education and Training, education suffered many impacts and damages in the past two years of the Covid-19 pandemic. Of which, non-public preschool and primary schools took the strongest hit. To remove the difficulties for these educational institutions, the National Assembly issued Resolution No.43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development, including a preferential credit package of VND1.4 trillion (US$61.16 million) for non-public preschool and primary educational institutions that must halt operations for at least one month upon the requirements of Covid-19 prevention and control to resume teaching activities after the Covid-19 pandemic.

Decision No.11/2022/QD-TTg of the Prime Minister was issued timely, helping educational institutions restore operations and adapt to the situation of the Covid-19 pandemic in the current period - when kindergartens have reopened nationwide, contributing to ensuring the quality of preschool education. According to this decision, more than 3,200 preschools and primary schools and more than 12,300 independent preschools benefit from the policy with a loan term of 36 months. The interest rate of 3.3 percent per annum or 0.27 percent per month is the highest preferential interest rate for organizations borrowing money at the Vietnam Bank for Social Policies (VBSP).

Ms. Ngo Thi Minh said that the VND1.4-trillion support package would be lent to non-public preschool and primary educational institutions. The maximum loan is VND80 million ($3,499.93) for people-founded and private independent preschool educational institutions and VND200 million ($8,749.83) for people-funded and private preschools and primary schools.

Ms. Ngo Thi Minh, Deputy Minister of the Ministry of Education and Training

As for the loan procedure, no collateral is required for a loan of less than VND100 million. Collaterals are needed for a loan from VND100-VND200 million, and the VBSP will provide specific guidance about collaterals. The loan procedure is simple with verification of commune-level People's Committee. It will take 5-7 days after the date of receipt for the loan application to be processed. The loan is used to repair facilities, purchase medical equipment and supplies for the Covid-19 prevention and control, and other equipment to restore and maintain activities.

The Covid-19 pandemic has had heavy impacts on education over the past two years. According to statistics, about 103,896 teachers of non-public preschool and primary educational institutions were affected by the pandemic. Of which, there were 101,845 preschool teachers. Besides the policy on preferential loans to support non-public preschool and primary educational institutions, the Ministry of Education and Training has also been coordinating with the Ministry of Finance to submit to the Prime Minister additional support policies for teachers working at non-public preschools and primary schools who have not yet received support policies. The expected support level is about VND3.7 million ($161.58) per teacher, according to Ms. Ngo Thi Minh.

sggpnews.org.vn