Set interest rate for social housing loans at 4.8%/year

Prime Minister Nguyen Xuan Phuc has just issued Decision 630/QD-TTg on preferential interest rates for social housing loans at the Vietnam Bank for Social Policies according to the provisions of Decree 100/2015/ND-CP of the Government.

Specifically, the preferential loan interest rate at the Vietnam Bank for Social Policies for subjects specified in Decree 100/2015/ND-CP dated October 20, 2015 of the Government on development and management of social housing in 2017 is 4.8%/year (0.4%/month).

Annually, the Vietnam Bank for Social Policies conducts a preliminary review and assessment; proposes and recommends appropriate interest rate adjustments.

There are 9 groups of subjects supported in the social housing development program.

This set interest rate is even lower than the 5% rate applied when implementing the previous VND30,000 billion credit package.

The subjects eligible for preferential loans remain unchanged (as stipulated in Clauses 1, 4, 5, 6 and 7, Article 49 of the Housing Law). The above subjects are entitled to a minimum loan term of 15 years from the date of disbursement of the first loan. In case the customer wishes to borrow for a term shorter than the minimum loan term, he/she can negotiate with the bank on a lower loan term.

Previously, many people were concerned that when the 30,000 billion VND package with a loan interest rate of 5%/year ended, low-income people would no longer have the opportunity to buy a house because the loan interest rates at commercial banks were determined to be out of reach.

In June last year, the Government decided to set a preferential interest rate for social housing loans at 4.8% per year at the Vietnam Bank for Social Policies, but those who want to borrow still have difficulty accessing it. The reason is said to be because the Vietnam Bank for Social Policies requires borrowers to make monthly savings deposits there for a minimum period of 12 months from the date of signing the credit contract. The minimum monthly deposit is equal to the debt repayment amount.

According to Dantri