Prime Minister allows expanding the loan subjects of the 30,000 billion VND package

Households and individuals participating in investing in social housing for rent, hire-purchase and sale to workers, laborers, students, etc. can also borrow from the housing support package.

Households and individuals investing in social housing can also borrow from the 30,000 billion VND package. Photo: Hoang Lan

The proposal of the Ministry of Construction was just approved by the Government at the meeting in the middle of last week. Accordingly, the Prime Minister allowed to extend the support period for customers who are households and individuals with the maximum loan term from 10 years to 15 years.

Investors in social housing for rent, hire-purchase and sale to workers, laborers, students, etc. are also eligible for loans from the support package. Those who have difficulty with housing and have land suitable for planning are also eligible for preferential loans for construction.

For the market to develop healthily, Minister Trinh Dinh Dung suggested continuing to review ongoing real estate projects under the Prime Minister's direction. From there, identify which projects should be stopped or continued to be implemented to suit the market's capabilities and needs. To develop social housing, the Ministry of Construction believes that localities need to create conditions for businesses to access land procedures, as well as use labor.

The housing support loan package was launched on June 1, 2013. This program is for home buyers with an area of ​​less than 70m2, selling price under 15 million VND per m2; and businesses. Of which, the package allocates a maximum of 30% for loans to businesses, 70% for home buyers.

As of May 31, the bank has committed to lending more than VND3,954 billion with a total outstanding loan of VND2,156 billion. Of which, the bank has disbursed VND1,343 billion to 5,368 households. For organizations, the bank has disbursed VND812 billion to 19 projects. Compared to half a month ago, the disbursed amount has increased by more than VND180 billion.

According to the Ministry of Construction, the housing support credit package of 30,000 billion VND has accelerated in the first 5 months of this year. Specifically, at December 31, 2013, the total capital committed for new loans was 1,760 billion, while by May 31, 2014, the total capital committed for loans was 3,954.4 billion VND, an increase of 225%, reaching 13.2% compared to the total capital source.

According to Express