Who will get loans to buy social housing?
The Government has just officially issued Decision No. 370/QD-TTg on preferential interest rates for social housing loans in 2018 at the Vietnam Bank for Social Policies according to the provisions of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing.
Accordingly, the preferential interest rate will be 4.8%/year (0.4%/month). Overdue interest rate is calculated at 130% of the lending interest rate. This is the information that people are waiting for. So who will benefit from this policy?
In principle, the borrower must be the right borrower and fully meet the loan conditions as prescribed; use the loan for the right purpose; and repay the principal and interest on time.
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| Preferential interest rate for loans to buy social housing will be 4.8%/year. |
Eligible borrowers include people with revolutionary contributions according to the law on preferential treatment for people with revolutionary contributions; low-income people, poor and near-poor households in urban areas; workers working in enterprises inside and outside industrial zones; officers, professional non-commissioned officers, technical non-commissioned officers, professional soldiers, workers in agencies and units of the People's Public Security and the People's Army; cadres, civil servants and public employees according to the law on cadres, civil servants and public employees.
Except for those who have rendered meritorious services to the revolution according to the provisions of the law on preferential treatment for those who have rendered meritorious services to the revolution; the remaining subjects to be eligible for loans must be not subject to regular income tax according to the provisions of the law on personal income tax; in the case of poor or near-poor households, they must be poor or near-poor households according to the provisions of the Prime Minister.When borrowing capital from the Social Policy Bank, the borrower must meet all conditions such as making monthly savings deposits at the bank with a minimum deposit period of 12 months from the date of signing the Credit Contract with the Social Policy Bank. The minimum monthly deposit is equal to the borrower's monthly repayment.
In addition, the borrower must have sufficient equity capital of at least 20% of the value of the Social Housing Purchase Contract/Lease-purchase Contract for loans to purchase/lease-purchase social housing; at least 30% of the estimated value or cost calculation plan for loans to build new or renovate and repair houses.
Maximum loan amount is 80% of the contract value for purchase or lease-purchase of social housing.
The minimum loan term is 15 years and the maximum is not more than 25 years from the date of first loan disbursement. In case the borrower needs to borrow with a term lower than the minimum loan term, he/she must negotiate with the Social Policy Bank where the loan is made on a lower loan term.
The Social Policy Bank conducts direct lending at provincial branch offices or district transaction offices.
The Vietnam Bank for Social Policies said it is prepared to make loans as soon as the Government provides funding to implement the program.
