Good news for home buyers: New 30,000 billion loan package coming soon
State-owned commercial banks must reserve at least 3% of their outstanding loans for low-cost housing loans with interest rates as low as 50% of market interest rates....
This information was revealed by Mr. Nguyen Tran Nam - former Deputy Minister of Construction, Chairman of Vietnam Real Estate Association at the Vietnam Real Estate Real Estate Forum, which took place on the morning of April 20 in Hanoi.
Mr. Nguyen Tran Nam said that the 30,000 billion VND loan package for low-income home buyers and social housing implemented by the State Bank has officially ended, because the signed contracts exceeded the amount of 30,000 billion VND.
However, the loan contracts signed within the framework of the 30,000 billion VND package will continue to be disbursed at a low interest rate of 5%. This direction was given by the Prime Minister in the Resolution of the regular Government meeting last March.
However, Mr. Nam said that those who are in need of buying social housing or low-cost commercial housing should not be too worried. "Support for the poor to buy low-cost housing or social housing has been officially included in the Housing Law and Decree 100 on social housing development," Mr. Nam said.
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| Accordingly, commercial banks with controlling shares of the State must reserve at least 3% of outstanding loans for social housing loans, with a maximum interest rate of 50% lower than the market interest rate. With the current commercial loan interest rate for home purchase, the interest rate may only be around 5%/year - equal to the 30,000 billion VND loan package. |
"Currently, 5 commercial banks have a total outstanding debt of over 1 million billion, which means they always reserve about 30,000 billion for lending" - the former Deputy Minister of Construction calculated.
Mr. Nam also said that the State Bank has deployed and assigned 4 State-owned commercial banks including Agribank, Vietcombank, VietinBank and BIDV to implement this law. At the same time, the management agency has also issued Circular 25 guiding the lending subjects, the method of price compensation, lending...
The second source of loans is the Housing Law, which also stipulates that the Social Policy Bank is assigned to provide loans to poor households to buy social housing with 50% of the loan capital coming from the budget and 50% from mobilized sources.
"Thus, instead of the 30,000 billion VND package, there will be 2 loan packages with unlimited scale and loan term with low interest rates for buyers of social housing and low-cost commercial housing. Therefore, those who need to borrow to buy a house can be completely assured" - Mr. Nguyen Tran Nam affirmed.
Implemented since 2013, as of March 20, 2016, according to statistics from the State Bank, banks have committed to lending 30,691.9 billion VND. The cumulative amount disbursed as of March 20 is 21,886.9 billion VND.
The 30,000 billion VND package has the participation of 19 commercial banks including: Agricultural Bank (Agribank), Vietnam Investment and Development Bank (BIDV), Foreign Trade Bank (Vietcombank), Industry and Trade Bank (VietinBank), Public Bank (PVcomBank), Import-Export Bank (Eximbank), Saigon Hanoi Bank (SHB), Tien Phong Bank (TPBank), Saigon Bank (SCB), South Asia Bank, Southeast Asia Bank (SeaBank), Vietnam Prosperity Bank (VPBank), Orient Bank (OCB), Lien Viet Post Bank (LienVietPostBank), Vietnam Thuong Tin Bank (VietBank), International Bank (VIB), National Bank (NCB), Bao Viet Bank (BaoVietBank) and Asia Commercial Bank (ACB).
According to Infonet
