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Saturday, July 13, 2024

Soft loans for buyers of social homes

By Thai Huy

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HCMC – Buyers of social homes will be entitled to a preferential interest rate within five years from the disbursement date, reported the local media.

From April 1 to the end of June 30, annual interest rates of 8.2% and 8.7% will apply to buyers of social homes and investors of social housing projects, respectively.

According to the Vietnam News Agency, the Government has assigned the SBV to roll out a credit package worth VND120 trillion to promote social housing projects targeting workers and low-income people.

From July onwards, the State Bank of Vietnam (SBV), the central bank, will announce lending rates during the promotional period to commercial banks participating in the loan package every six months.

Commercial banks, including four State-owned commercial banks — Agribank, BIDV, Vietcombank and VietinBank, agreed to deploy the package with lending rates 1.5 to 2 percentage points lower than the average levels on the market.

Organizations and individuals buying social homes in the social housing projects announced by the Ministry of Construction must meet the required conditions.

Accordingly, each home buyer is only entitled to a one-off loan to buy an apartment in the approved projects, and one social housing project can only receive a single loan granted by the bank.

The disbursement period will last until the disbursement of VND120,000 billion is completed, but not later than December 31, 2030.

Investors of social housing projects and individual home buyers will be offered a promotional period of three and five years from the date of disbursement but not later than the lending period as agreed upon in the first loan agreement.

When the promotional periods expire, banks and customers will strike a deal on the lending interest rates, which must be in compliance with the law.

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