Interest rate for social housing loans is 5%/year

Deputy Prime Minister Vuong Dinh Hue has just signed Decision 117 deciding on preferential loan interest rates of credit institutions designated by the State according to the provisions of Decree No. 100/2015 dated October 20, 2015 of the Government on development and management of social housing.

According to this Decision, the preferential lending interest rate of credit institutions designated by the State applied in 2018 for outstanding loans for purchase, lease, hire-purchase of social housing; construction of new or renovation, repair of housing as prescribed in Decree No. 100/2015 of the Government on development and management of social housing is 5%/year.

The Decision takes effect from January 22, 2018 and replaces Decision No. 48 dated January 13, 2017 of the Prime Minister.

The demand for social housing is still very large (Illustration photo).

According to Decree No. 100/2015, subjects eligible for preferential loans to buy, rent, or hire-purchase social housing; build new or renovate or repair houses for residence are subjects specified in Clauses 1, 4, 5, 6 and 7, Article 49 of the Housing Law, including:People with revolutionary contributions according to the provisions of law on preferential treatment for people with revolutionary contributions;Poor and near-poor households in rural areas;Households in rural areas frequently affected by natural disasters and climate change;Low-income people, poor and near-poor households in urban areas;Workers working at enterprises inside and outside industrial parks;

Officers, professional non-commissioned officers, technical non-commissioned officers, professional soldiers, workers in agencies and units of the people's police and people's army;Cadres, civil servants and public employees according to the provisions of law on cadres, civil servants and public employees;Subjects who have returned public housing as prescribed in Clause 5, Article 81 of this Law;Students of academies, universities, colleges, vocational schools; students of public ethnic boarding schools are allowed to use housing during their study period;Households and individuals subject to land recovery and housing clearance and demolition according to the provisions of law but have not yet received compensation from the State in the form of housing or residential land.

The above subjects are allowed to borrow for a minimum of 15 years from the date of first loan disbursement. In case the customer needs to borrow for a term lower than the minimum loan term, they can negotiate with the bank on a lower loan term./.