The State Bank has issued Circular No. 25/2015/TT-NHNN guiding preferential loans to implement social housing policies.

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Circular stipulates that subjects eligible for loans to invest in the construction of social housing are specified in Clause 1, Article 15 of the Decree.100/2015/ND-CPIncluding: Enterprises and cooperatives that are investors in social housing projects not using capital sources or forms specified in Clause 1, Article 53.Housing Lawfor rent, lease-purchase, sale; industrial production and service enterprises and cooperatives that invest in building houses to accommodate their own employees without collecting rent or collecting rent at a price not exceeding the social housing rental price frame issued by the provincial People's Committee; households and individuals that invest in building social housing for rent, lease-purchase, or sale.

At the same time, subjects borrowing capital to buy, rent, hire-purchase social housing; build new or renovate, repair houses for residence as prescribed in Clause 1, Article 16 of the Decree100/2015/ND-CPincluding the subjects specified in Clauses 1, 4, 5, 6 and 7, Article 49 of theHousing Law.

Loan amount

The designated credit institution shall base on the customer's loan demand, debt repayment ability, and its own capital resources to decide on the loan amount for the customer, specifically: For the construction of social housing for rent only, the maximum loan amount is 80% of the total project investment, loan plan and shall not exceed 80% of the value of the property securing the loan.

For the construction of social housing for rent or sale, the maximum loan amount is 70% of the total project investment, loan plan and does not exceed 70% of the value of the property securing the loan.

For customers borrowing preferential loans to buy, rent, or hire-purchase social housing, the maximum loan amount is 80% of the contract value for buying, renting, or hire-purchasing the house.

For customers borrowing preferential loans to build new or renovate or repair their houses, the maximum loan amount is 70% of the estimated value or loan plan and does not exceed 70% of the value of the property securing the loan.

The loan term is based on each regulated subject, in which the minimum loan term is 5 years and the maximum is not more than 20 years. In case the customer needs to borrow with a term shorter than the minimum loan term, they can negotiate with the credit institution about the specific loan term.

Not to exceed 50% of average lending rate

The loan currency is Vietnamese Dong. Preferential loan interest rates for customers borrowing capital to invest in building social housing are determined and announced by the State Bank from time to time.

Preferential lending interest rates ensure the principle: not exceeding 50% of the average lending interest rates of banks in the market in the same period. Preferential lending interest rates for subjects building social housing for rent are lower than those for subjects building social housing for rent-purchase or sale.

Recapitalization for designated credit institutions to implement social housing policies is carried out in accordance with current regulations of the State Bank.

This Circular takes effect from December 10, 2015.

According to Government.vn