Vietnam Raises Credit Limit for Students

The Vietnamese Prime Minister has approved an adjustment in the lending program for students which will raise the credit line from VND150,000 per month per student to VND1,250,000 per month per student. This is an effort by the government to help students cope with the tuition which is set to increase 10% annually from 2016. The decision will take effect starting January 9. According to Deputy Head of Vietnam Bank for Social Policy Nguyen Van Ly, the bank has lent around VND55 trillion ($2.4 billion) to over 3.3 million students since the program was debuted. As of Oct 31, 2015, outstanding loans for students were estimated at VND24 trillion, with overdue debt accounts for 0.54% of VND133 billion. (thanhnien.vn Jan 7, congly.com.vn Jan 7)