Poor households building houses can borrow 25 million VND/household

(Baonghean.vn) - The Vietnam Bank for Social Policies (VBSP) has just issued a document guiding the implementation of lending capital according to Decision No. 33/2015/QD-TTg of the Prime Minister on housing support policy for poor households according to poverty standards for the period 2011-2015.

Nam Dan Social Policy Bank provides loans to poor households

The beneficiaries of the loan are poor households whose names are on the list of poor households eligible for loans under the Housing Support Project for Poor Households according to the poverty standards for the period 2011-2015 approved by the Provincial People's Committee and provided to the Vietnam Bank for Social Policies.

In case a poor household is listed in the List of Poor Households eligible for loans under the Housing Support Project approved by the Provincial People's Committee, but has escaped poverty during the implementation of this policy, it will still be considered for a loan to build a house according to the instructions in the documents of the Vietnam Bank for Social Policies.

Loan amount: Households that are eligible for loans according to regulations and have a loan need can borrow up to 25 million VND/household. The maximum loan amount has been increased by 17 million VND compared to the maximum loan amount of 8 million VND/household in phase 1.

Loan interest rate: Loan interest rate: 3%/year (0.25%/month). Overdue debt interest rate: equal to 130% of loan interest rate (3.9%/year).

Loan term: 15 years from the time the borrower receives the first loan, of which the grace period is the first 05 years. During the grace period, the borrower does not have to repay the debt or pay interest; the borrower starts repaying the debt and paying interest from the 6th year onwards. The loan term has been increased by 05 years compared to the 10-year loan term in phase 1.

The minimum annual repayment amount is 10% of the total loan amount, and borrowers can repay the loan early. Specifically, borrowers can repay the principal early and pay interest during the grace period.

Lending method: Delegating some tasks in the lending process to socio-political organizations, including: Vietnam Women's Union, Vietnam Farmers' Association, Vietnam Veterans' Association and Ho Chi Minh Communist Youth Union. The lending entrustment mechanism is implemented as lending to poor households.

According to the report, the implementation results of the first phase of Program 167 have completed housing support for 507,143 households, including 224,000 ethnic minority households. In the 2015-2010 period, the program's goal is to support housing for about 311,000 poor households in rural areas, ensuring safe and stable housing, gradually improving living standards.

Pearl