United Overseas Bank has announced a partnership with Hanoi-based Vietnam National University to launch an interest-free study loan program for Vietnamese undergraduates this week.
ââ‚¬Å“Education is key to success. We believe that offering interest-free loans instead of scholarships can sustain the funding for a longer period as loans repaid will be given to to new applicants, thereby benefiting more students,ââ‚¬ said Thng Tien Tat, the bankââ‚¬â„¢s regional manager for Vietnam and Myanmar.
The bank plans to offer VND5.5 billion or US$300,000 to 700 Vietnamese students over the three years.
As part of its corporate social responsibility efforts, the bank seeks to focus on children, education and the arts.
ââ‚¬Å“Vietnam has one of the highest literacy rates in the region with great emphasis placed on education. However, with economic development, prices of goods and services in all sectors, including tuition fees for tertiary education, have increased,ââ‚¬ the bank said in a statement.
It said the additional financial burden was a concern for the government as well as the students and their parents. Students may not have peace of mind to complete their studies if they keep worrying about school fees.
The manager said this would also inculcate a sense of responsibility and self-reliance among the students.
The university will be the coordinator for the bank in terms of collecting and verifying loan applications and working with the bank to set the criteria for selection, he said.
Reported by Minh Quang