How long is the term of concessional loans for construction of social housing in Vietnam? How much concessional loans can be borrowed to invest in the construction of social housing in Vietnam?
What are the rules for the implementation of incentive policies on social housing in Vietnam?
Pursuant to Clause 1, Article 52 of the 2014 Law on Housing in Vietnam stipulating as follows:
Rules for the implementation of incentive policies on social housing
1. The policy on social housing support must follow the rules below:
a) There is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;
b) The policy must be publicized and transparent, under close inspection of the competent agency and communities;
c) The policy only applies to entities meeting all requirements as prescribed;
d) In case an entity benefits from more than one policy, he/she shall only benefit from the best policy; in case there are many entities meeting the same requirements, the disabled or women shall be given priority;
dd) In case a household has more than one entity benefiting from the policies, there is only one policy applying to that household.
2. The People’s Committee of the province shall implement and inspect the policies on social housing in the province.
Thus, according to the above provisions, the policy on social housing support must follow the rules below:
- Firstly, there is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;
- Secondly, the policy must be publicized and transparent, under close inspection of the competent agency and communities;
- Thirdly, the policy only applies to entities meeting all requirements as prescribed in the 2014 Law on Housing in Vietnam;
- In case an entity benefits from more than one policy, he/she shall only benefit from the best policy; in case there are many entities meeting the same requirements, the disabled or women shall be given priority;
- In case a household has more than one entity benefiting from the policies, there is only one policy applying to that household.
How long is the term of concessional loans for construction of social housing in Vietnam? How much concessional loans can be borrowed to invest in the construction of social housing in Vietnam? (Image from the Internet)
How long is the term of concessional loans for construction of social housing in Vietnam?
Pursuant to Clause 5, Article 15 of Decree No. 100/2015/ND-CP stipulating as follows:
Concessional loans for construction of social housing
...
5. Loan term:
a) Regarding construction of social houses for lease, the minimum loan term is 15 years and the maximum loan term is 20 years from the date of the first disbursement;
b) Regarding construction of social houses for sale or lease purchase, the minimum loan term is 10 years and the maximum loan term is 15 years from the date of the first disbursement;
c) Regarding projects of social houses for sale, the minimum loan term is 05 years and the maximum loan term is 10 years from the date of the first disbursement
d) Any borrower that wishes to have a shorter loan term than those specified in Point a, b, and c of this Clause may reach an agreement with the lending bank.
6. The principal and interest shall be paid in accordance with regulations of the lending credit institution.
7. Loan interest:
a) The concessional rates of Vietnam Bank for Social Policies are decided by the Prime Minister at the request of the Board of Directors at that time;
b) The concessional rates of credit institutions are decided and announced by the State bank of Vietnam; such rates shall not exceed 50% of the average interest rate of banks at the same time.
8. Disbursement: capital is disbursed according to the progress of the project and at the investor’s request. The amount disbursed depends on the completion of the works according to technical checkpoints.
Thus, according to the above regulations, the term of concessional loans for construction of social housing is as follows:
- Regarding construction of social houses for lease, the minimum loan term is 15 years and the maximum loan term is 20 years from the date of the first disbursement;
- Regarding construction of social houses for sale or lease purchase, the minimum loan term is 10 years and the maximum loan term is 15 years from the date of the first disbursement;
- Regarding projects of social houses for sale, the minimum loan term is 05 years and the maximum loan term is 10 years from the date of the first disbursement
Note: Any borrower that wishes to have a shorter loan term than the terms mentioned above may reach an agreement with the lending bank.
How much concessional loans can be borrowed to invest in the construction of social housing in Vietnam?
Pursuant to Clause 4, Article 15 of Decree No. 100/2015/ND-CP stipulating as follows:
Concessional loans for construction of social housing
...
4. Maximum loans:
a) Regarding construction of social houses for lease: the maximum loan is 80% of the total investment in the project or loaning program, and must not exceed 80% of the collateral value;
b) Regarding construction of social houses for sale or lease purchase: the maximum loan is 70% of the total investment in the project or loaning program, and must not exceed 70% of the collateral value.
5. Loan term:
a) Regarding construction of social houses for lease, the minimum loan term is 15 years and the maximum loan term is 20 years from the date of the first disbursement;
b) Regarding construction of social houses for sale or lease purchase, the minimum loan term is 10 years and the maximum loan term is 15 years from the date of the first disbursement;
c) Regarding projects of social houses for sale, the minimum loan term is 05 years and the maximum loan term is 10 years from the date of the first disbursement
d) Any borrower that wishes to have a shorter loan term than those specified in Point a, b, and c of this Clause may reach an agreement with the lending bank.
6. The principal and interest shall be paid in accordance with regulations of the lending credit institution.
7. Loan interest:
a) The concessional rates of Vietnam Bank for Social Policies are decided by the Prime Minister at the request of the Board of Directors at that time;
b) The concessional rates of credit institutions are decided and announced by the State bank of Vietnam; such rates shall not exceed 50% of the average interest rate of banks at the same time.
8. Disbursement: capital is disbursed according to the progress of the project and at the investor’s request. The amount disbursed depends on the completion of the works according to technical checkpoints.
Thus, according to the above regulations, the concessional loans which can be borrowed to invest construction of social housing are as follows:
- Regarding construction of social houses for lease: the maximum loan is 80% of the total investment in the project or loaning program, and must not exceed 80% of the collateral value;
- Regarding construction of social houses for sale or lease purchase: the maximum loan is 70% of the total investment in the project or loaning program, and must not exceed 70% of the collateral value.
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