Interest rates on social housing loans increased to 5%
Eligible borrowers are eligible for a minimum loan term of 15 years from the date of first loan disbursement.
The Prime Minister has just signed Decision 255/QD-TTg deciding on preferential loan interest rates of credit institutions designated by the State according to the provisions of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on development and management of social housing.
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Accordingly, the preferential lending interest rate of credit institutions designated by the State applied in 2019 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/ND-CP dated October 20, 2015 of the Government on development and management of social housing is 5%/year.
The Decision takes effect from March 4, 2019 and replaces Decision No. 117/QD-TTg dated January 22, 2018 of the Prime Minister. In Decision 117/2018, the interest rate was 5%, but then in April 2018, the Prime Minister issued Decision 370/2018 reducing it to 4.8%/year.
According to Decree No. 100/2015/ND-CP, 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 meritorious services to the revolution according to the provisions of the law on preferential treatment for people with meritorious services to the revolution; low-income people, poor and near-poor households in urban areas; workers working at enterprises inside and outside industrial zones; 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 the law on cadres, civil servants and public employees.
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 for a lower loan term.
