30 trillion VND package: Loans from BIDV take only 4 days.

It is expected that in 2013, the Vietnam Investment and Development Bank (BIDV) will disburse approximately over 2,700 billion VND in housing support loans and will disburse these loans as quickly as possible.

On the afternoon of May 23rd, BIDV officially announced its plan to implement the Circular on housing support. As one of the five commercial banks assigned by the State Bank of Vietnam to implement the 30,000 billion VND support package for social housing loans, BIDV has registered and allocated approximately 10,000 billion VND for housing support loans.

Accordingly, in the first 2-3 years, the loan weighting for businesses and homebuyers is expected to be around 60%/40%, then gradually decrease to about 30%/70% in the fourth year.

Fastest loan processing within 4 days.

BIDV has also provided quite detailed guidance on this loan throughout its system. Specifically, the eligible borrowers for this support package include: Businesses that are the investors of social housing projects as stipulated by law; and businesses that are the investors of commercial housing projects that have been converted into social housing projects.

Customers participating in the project must contribute a minimum of 20% of the total investment, with a loan term of approximately 5 years for corporate customers and 10 years for individual customers. The maximum interest rate applied is 6% per annum for 10 years, but not exceeding June 1, 2023. After June 1, 2023, the interest rate will be equal to the 12-month savings interest rate plus a 2% per annum fee.

Regarding the processing time for applications: BIDV will review and decide on credit approval within a maximum of 20 working days for corporate customers investing in social housing projects and within a maximum of 4 working days for individual customers borrowing to buy, rent, or lease-purchase social housing, provided that all loan conditions are met.

Five major banks are offering loans at a low interest rate of 6% per year for 10 years.

To implement lending for the social housing program, BIDV stated that it will publicly and transparently disclose the processes, procedures, implementation guidelines, applicable subjects, and policies at all BIDV branches and transaction points; and will publish the maximum and detailed processing time from the receipt of customer applications to loan disbursement.

BIDV will regularly and closely manage all customer accounts before, during, and after lending, conducting frequent inspections and monitoring to ensure that the funds are used for their intended purpose.

Upon discovering any misconduct by customers to misuse BIDV's funds or use loan funds for purposes other than intended, or any corrupt or exploitative behavior by BIDV officials at any level, BIDV will take strict disciplinary action in accordance with the law and BIDV's regulations.

Priority projects

BIVD prioritizes projects that are under construction but have the potential to be completed and handed over in 2013-2015; projects that have completed all legal procedures for project investment as required; projects that have sold more than 50% of the apartment units; and housing development projects serving specific target groups: housing for coal miners, housing for the armed forces (police, military).

At the same time, priority will be given to projects implemented in provinces/cities such as Hanoi, Ho Chi Minh City, Dong Nai, Da Nang, Quang Ninh, Binh Duong, and industrial zones with a large workforce, as well as other provinces.

According to BIDV leaders, to date, BIDV has appraised and committed to lending to 3 social housing projects with a total of 1,068 apartments (total area of ​​118,000 m2), including a low-income housing project (investor: Vinaconex Xuan Mai Concrete and Construction Joint Stock Company), a residential apartment project at the end of Bach Dang Dong street (Da Nang), and a low-income housing project in Hue (investor: Vicoland Construction and Development Group Joint Stock Company).

These projects will be completed and apartments handed over in 2013-2014. BIDV has approved a total loan of VND 231 billion, with VND 101 billion already disbursed. BIDV is also currently appraising loans for several social housing projects in Ho Chi Minh City. It is understood that the Ho Chi Minh City People's Committee is considering converting four commercial housing projects into social housing projects with a total of 3,300 apartments, with the plan to be announced and implemented in early June 2013.

BIDV will closely coordinate with the Ministry of Construction and provinces/cities to implement the program immediately in the second quarter of 2013. It is expected that in 2013, BIDV will disburse approximately over 2,700 billion VND in housing support loans.

According to (VnMedia) - M.D