Prime Minister approves interest rate framework for social housing loans
Prime Minister Nguyen Xuan Phuc has just signed and promulgated the preferential loan interest rate framework at the Vietnam Bank for Social Policies for those who buy, rent-purchase social housing; build new houses or renovate and repair houses in the period 2019 - 2020.
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| According to current regulations applied in 2018, the preferential lending interest rate of credit institutions designated by the State for outstanding loans for purchasing, renting, or hire-purchasing social housing is 5%/year. |
Accordingly, the Prime Minister decided that the lending interest rate for the above cases shall not be lower than the lending interest rate to support poor households in housing according to Decision No. 33/2015/QD-TTg dated August 10, 2015 of the Prime Minister on housing support policy for poor households according to the poverty standard for the period 2011 - 2015 and shall not exceed the preferential lending interest rate of credit institutions designated by the State to buy, rent, or hire-purchase social housing.
New construction or renovation and repair of housing 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.
According to current regulations applied in 2018, the preferential lending interest rate of credit institutions designated by the State for outstanding loans for purchasing, renting, or hire-purchasing social housing; constructing new or renovating or repairing houses for housing as prescribed in Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing is 5%/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 revolutionary contributions according to the provisions of the law on preferential treatment for people with revolutionary contributions; low-income people, poor and near-poor households in urban areas; workers working in 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 on a lower loan term.