Loans to buy social housing: About 1,000 billion VND will be disbursed

700 households from 50 provincesborrowed

According to the Vietnam Bank for Social Policies, up to now, 700 people have borrowed preferential loans to buy social housing (NƠXH) in 50 provinces and cities with loans equivalent to 200 billion VND. Among the 700 households in 50 provinces and cities that have received loans from the NƠXH program according to Decree 100/2015/ND-CP, Quang Nam is the province with the largest amount of money disbursed - 31 billion VND, followed by Da Nang (21 billion VND), Bac Ninh (15 billion VND), Hung Yen (9 billion VND)...

In response to questions about the fact that large cities such as Hanoi and Ho Chi Minh City - where many low-income people, workers, and laborers in industrial zones are concentrated - have low disbursement amounts for the social housing program, Mr. Nguyen Van Ly, Deputy General Director of the Vietnam Bank for Social Policies, said that one of the main reasons is that people who are eligible to borrow from the social housing program in these localities are having many opportunities to consider how to borrow.

700 households in 50 provinces and cities received loans to buy social housing in 2018.

More specifically, according to Mr. Ly, Hanoi and Ho Chi Minh City are the localities that mainly focus on social housing projects. Currently, the branches of the Social Policy Bank in these localities are also preparing loan applications and will disburse in the near future.

“As far as we know, the reason borrowers are “not in a hurry” is because they are still considering whether to borrow to buy a small apartment or a larger one, to borrow to buy an apartment in a distant project or wait to borrow to buy a nearby project... This is a long-term program of the Government, not controlled by a deadline, so borrowers are not in a hurry,” said Mr. Nguyen Van Ly.

Also according to the representative of NHCS, currently, the total outstanding debt of the Social Housing Loan program has reached 198,397 billion VND; with over 700 customers having outstanding debt. Of which, the branches with high outstanding debt are: Quang Nam (nearly 32 billion VND); Da Nang City (21.11 billion VND); Bac Ninh (15.345 billion VND); Bac Giang (11.708 billion VND); Hung Yen (9.189 billion VND); Lai Chau (8.45 billion VND); Quang Binh (8.339 billion VND); Thua Thien Hue (7.167 billion VND); Quang Tri (7.155 billion VND); Thanh Hoa (6.997 billion VND)...

Be careful about the profile

Also according to the representative of the NHCS, in the process of implementing the social housing loan program, some problems have arisen such as: apartments in social housing projects but the project investor has mortgaged to a commercial bank to borrow capital, then when borrowing social housing, the borrower must request the investor to release the mortgage, and this process takes a little more time...

“Social housing lending is a long-term policy of the State, so in addition to lending to qualified applications, we continue to strengthen propaganda, especially in industrial zones to help bring information to workers and create conditions in the process of completing the application. Branches must also closely cooperate with provincial Labor Federations to grasp the needs of workers, thereby preparing human resources to respond promptly” - Mr. Nguyen Van Ly shared.

The representative of the Social Policy Bank also added that with the current number of loan applications for the social housing program, it is expected that by the end of 2018, this bank will disburse the social housing program in all provinces and cities nationwide, with an outstanding loan of about 1,000 billion VND.

According to the Ministry of Construction's calculations, by 2021, the whole country will need about 18,000 billion to meet the demand for social housing loans, but only 2,316 billion VND has been allocated to the social housing loan program. It is known that the Ministry of Construction has recently submitted to the National Assembly and the Government a request for an additional 3,000 billion VND to better meet practical needs.

The State budget allocated to the VBSP for the period (2016 - 2020) provided the VBSP with more than VND 1,163 billion for lending, while the VBSP mobilized an additional 50% to create a total capital source of over VND 2,326 billion. In 2018, the VBSP received VND 500 billion from the State budget, along with the capital mobilized by the VBSP to create lending capital in 2018 of VND 1,000 billion.