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 53Housing 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 ofHousing Law.

Loan amount

The designated credit institution shall base on the customer's loan demand, debt repayment ability, and its capital capacity to decide 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 not exceed 80% of the value of the loan collateral.

For the construction of social housing for lease-purchase or sale, the maximum loan amount is equal to 70% of the total project investment, loan plan and does not exceed 70% of the value of the asset securing the loan.

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

For customers borrowing preferential loans to build new houses or renovate and repair their houses, the maximum loan amount is equal to 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 on the specific loan term.

Not to exceed 50% of the average lending rate

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

The preferential loan interest rate ensures the principle: not exceeding 50% of the average loan interest rate of banks in the market in the same period. The preferential loan interest rate for those building social housing for rent is lower than that for those building social housing for rent-to-buy or sale.

Recapitalization of 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