The interest rate for home loan support is 6%/year.
On May 15, 2013, the State Bank of Vietnam (SBV) issued Circular No. 11/2013/TT-NHNN regulating housing support loans under Resolution No. 02/NQ-CP dated January 7, 2013 of the Government.
In this Circular, the State Bank requires 5 State-owned commercial banks and joint-stock commercial banks in which the State holds more than 50% of charter capital (including the Bank for Agriculture and Rural Development of Vietnam, the Joint Stock Commercial Bank for Investment and Development of Vietnam, the Joint Stock Commercial Bank for Foreign Trade of Vietnam, the Vietnam Joint Stock Commercial Bank for Industry and Trade, and the Mekong Delta Housing Development Joint Stock Commercial Bank) to reserve a minimum capital of 3% of total outstanding loans at the end of the previous year for lending to buyers and renters of social housing and commercial housing with an area of less than 70m2, selling price under 15 million VND/m2 and enterprises that are investors in social housing construction projects or commercial housing projects converted to social housing projects.
Along with that, the circular also stipulates that the interest rate applied in 2013 is 6%/year; periodically in December of each year, the State Bank determines and announces the interest rate applied for the following year, equal to about 50% of the average lending interest rate of banks in the market but not exceeding 6%/year. The maximum period of application of this interest rate is 10 years for customers buying, renting, or leasing social housing; renting or purchasing commercial housing and 5 years for customers who are enterprises but not exceeding June 1, 2023.
In addition, the State Bank also stipulates the conditions for housing support loans for eligible borrowers. Specifically, in addition to the conditions in Circular No. 07/2013/TT-BXD, borrowers must meet additional conditions such as: Having a purchase, lease, or hire-purchase contract with the investor; having a clear loan purpose and having enough minimum capital to participate in the loan plan...
This Circular takes effect from June 1, 2013.
NT (Synthesis)
