Poor households can borrow 25 million VND/household to build or repair houses.

The Prime Minister has just issued a housing support policy for poor households according to the poverty line for the period 2011 - 2015 (Housing support program for poor households according to Decision 167/2008/QD-TTg, phase 2) with the goal of supporting housing for about 311,000 poor households in rural areas, ensuring safe and stable housing, gradually improving living standards, contributing to sustainable hunger eradication and poverty reduction.

Households receiving housing construction support under this Decision must be poor households according to the poverty standards prescribed in Decision 09/2011/QD-TTg dated January 30, 2011 of the Prime Minister on promulgating standards for poor and near-poor households applicable for the period 2011 - 2015, on the list of poor households managed by the People's Committee at the commune level as of October 1, 2015, and must be independent households with a minimum separation period of 5 years by October 1, 2015.

3 conditions for housing support

According to the Decision, households receiving support for housing construction must meet 3 conditions:

1- Not having a house or having a house but it is too makeshift, damaged, dilapidated, at risk of collapse and not being able to improve the house by oneself.

2- Not yet received housing support from support programs and policies of the State or other socio-political organizations.

3- In case of having received housing support under other housing support programs and policies, the following subjects must be included: Housing has collapsed or is severely damaged, at risk of collapse due to natural disasters such as: Storms, floods, earthquakes, landslides, fires but there is no capital source to repair or rebuild. Housing has been supported under other housing support programs and policies for a period of 8 years or more as of October 1, 2015 but now the house is damaged, dilapidated, at risk of collapse.

The Decision clearly states that the housing support policy for poor households according to the poverty line for the period 2011 - 2015 is applied to households subject to the provisions of this Decision who are residing in rural areas or residing in hamlets, villages, hamlets, villages, and hamlets under wards, towns, or communes under provincial towns or cities but who mainly live on agriculture, forestry, and fisheries.

Prioritize support for the following subjects in order: Households in particularly difficult circumstances (elderly, single, disabled); households of ethnic minorities; households in areas frequently affected by natural disasters; households living in particularly difficult villages and hamlets; households living in administrative units in difficult areas; households residing in poor districts as prescribed in Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government; and the remaining households.

Maximum loan of 25 million VND/household

Households that are eligible under the provisions of this Decision and have a need for loans can borrow up to 25 million VND/household from the Social Policy Bank to build new or repair houses. The loan interest rate is 3%/year; the loan term is 15 years, of which the grace period is 5 years. The maximum repayment period is 10 years starting from the 6th year, the minimum annual repayment is 10% of the total loan amount.

The People's Committee at the commune level shall confirm the progress of housing construction for poor households in the area and send a summary document to the Social Policy Bank.

The Social Policy Bank disburses 100% of loan capital as prescribed for households building new houses after completing the foundation and for households repairing and renovating existing houses after completing 30% of the work volume.

The decision takes effect from October 1, 2015.

According to Chinhphu.vn