Detailed information about subjects and social housing loan applications with interest rate of 4.8%

The lending interest rate is decided by the Prime Minister for each period, based on the proposal of the Board of Directors of the Social Policy Bank. The interest rate on overdue debt is equal to 130% of the lending interest rate. Currently, the lending interest rate of the program is 4.8%/year (0.4%/month).

The Policy Bank has started lending for social housing at an interest rate of 4.8% per year.

Loan recipients

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.

Except for those who have rendered meritorious services to the revolution according to the provisions of the law on preferential treatment for those who have rendered meritorious services to the revolution; the remaining subjects to be eligible for loans must be not subject to regular income tax according to the provisions of the law on personal income tax; in the case of poor or near-poor households, they must be poor or near-poor households according to the provisions of the Prime Minister.

About loan conditions

The first, must make monthly savings deposits at the Social Policy Bank with a minimum deposit period of 12 months from the date of signing the Credit Contract with the Social Policy Bank. The minimum monthly deposit is equal to the monthly repayment of the borrower (for example, if the loan includes principal and interest of 3 million, the deposit amount is equivalent - PV)

Monday,have sufficient equity capital of at least 20% of the value of the Social Housing Purchase Contract/Lease-purchase Contract for loans to purchase/lease-purchase social housing; at least 30% of the estimated value or cost calculation plan for loans to build new or renovate and repair houses;

Tuesday, have sufficient documents proving the subject, housing status, residence conditions, and income to enjoy social housing policies according to regulations;

Wednesday,have income and ability to repay debt as committed to the People's Credit Fund;

Thursday, have a loan application to buy/hire-purchase social housing/build new/renovate, repair a house for residence, including a commitment from the individual and household members that they have not received preferential loans for social housing support from other banks or other credit institutions;

For loans to buy or hire-purchase social housing: Have a contract to buy or hire-purchase social housing with the project investor whose project is included in the list of social housing construction projects under the social housing investment program and plan approved by the competent authority.

For loans to build new or renovate and repair houses for residence: Have a certificate of land use rights, house ownership rights and other assets attached to the land at the place of permanent residence registration issued by a competent State agency in accordance with the provisions of the law on land; have a design, estimate or cost calculation plan in accordance with the provisions of the law on construction;

In addition, the procedures for securing loans require: For loans to buy or hire-purchase social housing: Secure the loan with assets formed from the loan capital according to the provisions of law. The Social Policy Bank where the loan is made, the investor and the borrower must agree in a tripartite contract on the method of managing and handling the secured assets. For loans to build new or renovate or repair houses: Secure the loan with the value of the right to use residential land and assets attached to residential land or other assets according to the provisions of law.

About loan limit:

In case of purchasing or hire-purchasing social housing: The maximum loan amount is 80% of the value of the contract for purchasing or hire-purchasing social housing. In case of constructing new houses or renovating or repairing houses for residence: The maximum loan amount is 70% of the estimated value or cost calculation plan and does not exceed 70% of the value of the property securing the loan.

Loan term, tMinimum 15 years and maximum 25 years from the date of first loan disbursement.In case the borrower needs to borrow with a term lower than the minimum loan term, they must negotiate with the Social Policy Bank where the loan is made. The Social Policy Bank will make loans directly at the provincial branch of the Social Policy Bank or the district transaction office of the Social Policy Bank.

About tlending practices

At the Savings and Loan Group: Borrowers submit their application to the Savings and Loan Group at their legal residence; Public review meeting under the supervision and witness of the Village Chief or Head of the Residential Group and the representative of the socio-political organization entrusted to the commune, ward or town; make a list of requests to borrow from the Social Policy Bank according to form No. 03a/NƠXH with loan application, Group meeting minutes sent to the Commune-level Poverty Reduction Board for submission to the Commune-level People's Committee.

At the Commune People's Committee: Based on the assigned capital plan targets, the Commune Poverty Reduction Committee collects the records of the Savings and Loan Groups in the entire commune and submits them to the Chairman of the Commune People's Committee for confirmation on the List of requests for loans from the Social Policy Bank, form No. 03b/NƠXH, then sends it to the Social Policy Bank where the loan is made.

In case the loan demand is greater than the assigned capital plan target, the organization will score according to the Scoring Criteria Table to consider priority for social housing loans, form No. 11/NƠXH.

At the lending bank: Upon receiving the loan application sent by the Savings and Loan Group, the lending bank notifies the borrower according to form No. 07/NƠXH to come and complete the loan procedures and bring the loan application. The credit officer will assess the completeness, legality and validity of the loan application, and prepare an assessment report according to form No. 02/NƠXH.

The credit officer submits the appraisal report with the loan application to the Head of the Credit Control Department/Team Leader, then submits it to the Director of the Social Policy Bank where the loan is made for consideration and approval. The control and approval of the loan application will take a maximum of 05 working days from the time the assigned credit officer submits the appraisal. The Social Policy Bank where the loan is made will notify the loan approval result according to form No. 04a/NƠXH or will not agree to approve the loan according to form No. 04b/NƠXH.

In case of loan approval, the Social Policy Bank where the loan is granted, the borrower and the investor sign a tripartite contract according to form No. 14/NƠXH, establish a credit contract according to form No. 05/NƠXH, a property mortgage contract according to form No. 12/NƠXH and carry out the secured transaction according to regulations.

When signing a Credit Contract or a Property Mortgage Contract, the borrower must present the original: Documents proving payment to the investor to purchase or lease-purchase social housing according to the signed Contract; Social housing purchase and sale contract/Social housing lease-purchase contract or certificate of land use rights, house ownership rights and other assets attached to the land; Other documents related to the secured assets for comparison.

The above Contracts are made in accordance with each borrower, type of collateral,...

Based on the credit contract signed between the borrower and the People's Credit Fund where the loan is made, the borrower opens a deposit account to deposit monthly savings according to regulations and makes the deposit from the month of signing the credit contract.

After the loan application is completed, the appraisal officer transfers it to the accounting department as a basis for disbursement.

Set repayment terms

The principal repayment period is set every 12 months from the date the borrower receives the first loan. The principal repayment period is divided into months for the borrower to make. The principal repayment amount for each period is equal to the monthly repayment amount agreed upon by the Social Policy Bank where the loan is made and the borrower multiplied by 12 months.

Borrowers do not have to pay the principal during the 12-month grace period from the date of receiving the first loan.

When the borrower receives the final loan, if the loan amount is lower than the approved loan amount, the Social Policy Bank where the loan is made will, together with the borrower, re-determine the repayment period and record it in the Credit Contract Appendix.

The People's Credit Fund opens a deposit account for the borrower.to serve the purpose of depositing savings and paying interest according to regulations during the time of depositing savings as well as creating a source of debt repayment and interest payment during the debt collection period. If the borrower transfers money within the Social Policy Bank system to the deposit account at the Social Policy Bank where the loan is made, it is free of charge.

Loan application for purchase/hire purchase of social housing at the Vietnam Bank for Social Policies, including:

Loan application form No. 01/NƠXH; Certificate of eligibility and housing status; certificate of income; certificate of residence;

In addition, depending on the purpose of using the loan, the following documents are required:

For loans to buy or lease-purchase social housing: Certified copy of the Social Housing Purchase and Sale Contract, or Social Housing Lease-Purchase Contract; Certified copy of documents proving payment to the investor to buy or lease-purchase social housing according to the signed Contract; Minutes of house handover between the borrower to lease-purchase social housing and the investor.

For loans to build new or renovate and repair houses for housing: Estimate or cost calculation plan according to form No. 10/NƠXH; Construction contract (if any); Design drawings and certified copies of Construction Permits according to regulations of law on construction; Certified copies of Certificates of land use rights, house ownership rights and other assets attached to land issued by competent State agencies according to regulations of law on land in the locality where permanent residence is registered.