Add home buyers eligible for preferential loans

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The Government has just issued a Resolutionamending and supplementing Resolution 02/NQ-CP dated January 7, 2013 of the Government on a number of solutions to remove difficulties for production and business, support the market, and resolve bad debts.

Accordingly, the support period for customers who are households and individuals is revised to a maximum of 15 years (old regulation 10 years) when borrowing capital to buy or lease-purchase commercial housing in projects in the area approved by competent authorities.

In addition to extending the support period, the Resolution also adds the following loan beneficiaries:

- Civil servants, public employees, armed forces, workers, and laborers with low income but facing housing difficulties, when purchasing commercial housing in housing development projects, urban construction investment projects in the area approved by competent authorities, with the total value of the purchase and sale contract (including house and land) not exceeding 1.05 billion VND.

- Officials, civil servants, armed forces and workers in urban areas who have land in accordance with the planning and are facing housing difficulties but have not received any form of support from the State, are entitled to preferential loans to build new or renovate their houses. The State Bank of Vietnam specifically regulates the maximum loan amount for these subjects, ensuring the principle of being lower than the amount that each household or individual is entitled to borrow to buy, rent or hire-purchase social housing in social housing development projects in the area.

- Households and individuals with investment plans to renovate or build new social housing in accordance with the provisions of law for lease, lease-purchase and sale to workers and laborers in industrial parks, small and medium-sized industrial clusters, export processing zones, economic zones, high-tech zones, industrial and handicraft production establishments, factories and enterprises (including inside and outside industrial parks) of all industries and occupations of all economic sectors; workers of all economic sectors in urban areas; students of universities, colleges, vocational secondary schools, vocational colleges, vocational secondary schools and vocational schools for workers (regardless of public or non-public) and other subjects eligible for social housing according to the provisions of Decree 188/2013/ND-CP dated November 20, 2013 of the Government on the development and management of social housing. The State Bank of Vietnam specifically regulates the minimum capital level for this subject when participating in investing in the construction of social housing.

The Resolution also adds a number of joint stock commercial banks designated by the State Bank of Vietnam to participate in lending to support housing.

The Government requested the People's Committees of provinces and centrally-run cities to review ongoing real estate projects to classify projects that can continue to be implemented, projects that need to be adjusted and converted to suit market needs; stop granting new investment licenses to projects that are not in line with urban development and housing development plans approved by competent authorities.

People's Committees of provinces and centrally run cities shall promote the development of social housing; facilitate the shortening of procedures for establishing, appraising and approving social housing development projects, including commercial housing projects converted to social housing and adjust the structure of commercial apartments to meet the supply of social housing and small-scale commercial housing for civil servants, public employees, armed forces, workers and laborers with low incomes and difficulties in housing to buy, rent and hire-purchase.

The State Bank of Vietnam shall preside over and coordinate with the Ministry of Construction and the Ministry of Finance to develop long-term and stable credit mechanisms and policies to provide preferential loans to investors in social housing development projects and buyers, renters, and hire-purchasers of social housing based on the principles stipulated in Decree 188/2013/ND-CP dated November 20, 2013 of the Government on the development and management of social housing; at the same time, develop preferential credit mechanisms and policies to encourage enterprises, business organizations, households, and individuals to develop housing funds for rent according to the National Housing Development Strategy to 2020, with a vision to 2030 approved by the Prime Minister.

According to chinhphu.vn