Which Subjects are Eligible to Borrow the VND 120,000 Billion Social Housing Development Package According to Resolution 33? What are the Borrowing Conditions?
What are the Conditions for Borrowing the 120 Trillion VND Credit Program?
Based on Section 3 of Official Dispatch 1551/BXD-QLN of 2023, in addition to meeting the conditions and criteria according to regulations on credit guided by the State Bank, borrowers of the 120 trillion VND credit program must also meet the following conditions and criteria:
(1) For Individual Borrowers:
- For those buying social housing or worker housing (social housing in industrial zones), there must be a social housing purchase contract with the investor in accordance with housing laws.
- For those allocated resettlement housing in renovation and reconstruction projects, there must be a purchase contract for housing or a construction works allocation contract for resettlement in accordance with housing laws.
(2) For Project Investors:
Investors in social housing projects, worker housing, renovations, and reconstruction of apartment buildings must be listed in the announced list of social housing projects, worker housing projects (social housing in industrial zones), renovations, and reconstruction of apartment buildings, published by the Provincial People's Committee, and must meet the following conditions:
- For social housing or worker housing projects: investment policy decisions must be approved by the competent authority according to investment laws and housing laws; there must be a land allocation decision or land use rights according to land law; compensation and site clearance must be completed; and construction permits must be obtained or exempted as specified by construction laws.
- For renovation and reconstruction of apartment buildings: investment policy approval from the competent state authority is required as per applicable laws, and other information must comply with relevant legal regulations.
Which entities can borrow the 120 trillion VND social housing development package as per Resolution 33? What are the borrowing conditions? (Image from the internet)
Which Entities Can Borrow the 120 Trillion VND Social Housing Development Package as per Resolution 33?
On April 20, 2023, the Ministry of Construction issued Official Dispatch 1551/BXD-QLN of 2023 guiding the determination of project lists, subjects, conditions, and criteria for preferential loans for social housing development, worker housing, renovation, and reconstruction of apartment buildings.
To implement Resolution 33/NQ-CP of 2023, the Ministry of Construction guides the criteria for entities eligible to borrow from the 120 trillion VND preferential credit package for social housing development, worker housing, renovation, and reconstruction of apartment buildings as specified in Section 2 of Official Dispatch 1551/BXD-QLN of 2023.
To be specific:
(1) For Individual Borrowers:
- For purchasing social housing or worker housing (social housing in industrial zones) as per Clause 1, Article 50 of Housing Law 2014, preferential loan eligibility includes individuals defined in Clauses 1, 4, 5, 6, 7, 8, and 10, Article 49 of Housing Law 2014:
+ Persons with meritorious services to the revolution as prescribed by laws on preferential treatment for persons with meritorious services.
+ Low-income individuals, poor households, and near-poor households in urban areas.
+ Workers working in enterprises inside and outside industrial zones.
+ Officers, professional/non-commissioned officers, technical specialists, professional soldiers, and workers in agencies or units belonging to the police and military forces.
+ Officials and public employees as prescribed by laws on officials and public employees.
+ Individuals returning service housing as prescribed in Clause 5, Article 81 of Housing Law 2014.
+ Households and individuals whose land is recovered and who must relocate or demolish their homes but have not yet been compensated with a new house or homestead land.
- For purchasing housing in renovation and reconstruction projects of apartment buildings according to Clause 2, Article 26 of Decree 69/2021/ND-CP dated July 15, 2021, owners allocated resettlement housing but required to pay additional area difference can borrow from financial institutions operating in Vietnam.
(2) Investors in social housing projects, worker housing projects (social housing in industrial zones), renovation, and reconstruction projects of apartment buildings in accordance with housing laws.
Preferential Interest Rates for the 120 Trillion VND Social Housing Development Package as per Resolution 33
Based on Subsection 1.5, Section 1 of Official Dispatch 2308/NHNN-TD of 2023, it specifies the preferential loan interest rates as follows:
Preferential loan interest rates:
- The interest rate for loans applicable until June 30, 2023, for investors is 8.7% per annum.
- The interest rate for loans applicable until June 30, 2023, for homebuyers is 8.2% per annum.
From July 1, 2023, the State Bank of Vietnam (SBV) will announce the preferential loan interest rate for participating commercial banks every six months.
Additionally, after the preferential period, the loan interest rate: Commercial banks and customers will mutually negotiate and agree, ensuring compliance with legal regulations, and the rate or method of determining the rate will be specified in the loan agreement between the bank and the customer.
Furthermore, the SBV requires Agribank, BIDV, Vietcombank, and Vietinbank to urgently implement the 120 trillion VND credit program starting April 1, 2023, and issue uniform guidelines for the program rollout across the system.
Other commercial banks participating in the program must follow the guidelines of this dispatch and report their participation to the SBV, and also send a registration document for accessing information about the program to the Vietnam National Credit Information Center (CIC).
LawNet