HCMC — Vietnam has reduced the preferential interest rate for social housing loans to 5.4% a year from 6.6%, effective October 10, 2025, under a new Government decree.
The change, detailed in Decree 261/2025/ND-CP, applies to loans from the Vietnam Bank for Social Policies (VBSP) for buying or leasing social homes, housing for armed forces personnel, and building or repairing homes.
Existing borrowers with loan contracts signed before October 10 will have their agreements adjusted to the new rate for both outstanding and overdue principal balances.
The rate cut is part of the Government’s effort to expand access to affordable housing and improve social welfare. It aligns with the National Assembly’s Resolution 201/2025/QH15, which introduces special mechanisms on land use and funding for social housing development.
As of now, the total outstanding balance of social housing loans has reached VND19.53 trillion, with over 50,000 borrowers.
The preferential loan program supports low-income earners, workers in industrial zones, civil servants, armed forces personnel, and poor or near-poor households in both rural and urban areas, especially those affected by natural disasters and climate change.
