Interest rate for social housing loans 4.8%/year
If late in payment, the borrower will have to pay overdue interest of 130%.
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Prime Minister Nguyen Xuan Phuc has just signed a decision on preferential interest rates for social housing loans at the Vietnam Bank for Social Policies. Accordingly, borrowers buying social housing will enjoy a preferential interest rate of 4.8% per year, equivalent to 0.4% per month.
The interest rate at the Policy Bank is 0.2% lower per year than at commercial banks. However, if the debt is overdue, the home buyer will have to pay an interest rate of 130% of the loan interest rate.
The Prime Minister requested that the Vietnam Bank for Social Policies annually review and evaluate, as well as propose appropriate interest rate adjustments.
According to Decree 100, buyers and renters of social housing will be able to borrow up to 80% of the value of the contract to buy, rent or hire-purchase social housing. In case of new construction or renovation or repair of housing, the maximum loan amount is 70% of the estimated value or loan plan and must not exceed 70% of the value of the property securing the loan.
The minimum loan term is 15 years from the date of first loan disbursement. In case the customer wants to borrow for a shorter term, they can negotiate with the bank.
Buyers and lessees of social housing are not allowed to mortgage or transfer the housing in any form for a minimum period of 5 years and are only allowed to resell or lease it after being granted a Certificate of land use rights, house ownership rights and other assets attached to the land.
