What are conditions for preferential loans for construction or renovation, repair of housing in Vietnam from August 1, 2024 at the Social Policy Bank?
What are conditions for preferential loans for construction or renovation, repair of housing in Vietnam from August 1, 2024 at the Social Policy Bank?
Based on Clause 2, Article 48 of Decree 100/2024/ND-CP stipulating the subjects specified in Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8, Article 76 of the Housing Law 2023 to be eligible for preferential loans for construction or renovation, repair of housing in Vietnam must meet the following conditions:
- Subjects specified in Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8, Article 76 of the Housing Law 2023 include:
(1) Persons with meritorious services to the revolution, relatives of martyrs who are eligible for housing improvement support according to the Ordinance on Preferences for Persons with Meritorious Services to the Revolution.
(2) Poor households, near-poor households in rural areas.
(3) Poor households, near-poor households in rural areas frequently affected by natural disasters and climate change.
(4) Poor households, near-poor households in urban areas.
(5) Low-income people in urban areas.
(6) Workers and laborers working at enterprises, cooperatives, and cooperative unions inside and outside industrial zones.
(7) Officers, professional soldiers, non-commissioned officers of the People's Armed Forces, police workers, officials, defense workers serving on active duty; persons working in cipher organizations, and other workers in cipher organizations receiving salaries from the state budget.
(8) Officials and public employees according to the law on officials and public employees.
- The above subjects wishing to obtain a preferential loan for construction or renovation, repair of housing in Vietnam must meet the following conditions:
+ Have complete documentation proving their eligibility and conditions according to Article 76, Article 110 of the Housing Law 2023.
The Commune People's Committee confirms the conditions according to point a, clause 4, Article 110 of the Housing Law 2023; the document form is guided by the Minister of Construction.
+ Have the ability to repay the debt as committed to the lending credit institution.
+ Have a Request Form for a loan to build or renovate, repair housing.
+ Have a Certificate of land use rights, ownership of assets attached to the land for the housing construction or renovation, repair work.
+ Have a plan calculating the cost, have a construction permit in case it is required by law. In case of having a temporary construction permit according to the law, the loan will be considered according to the approved temporary construction permit duration.
+ Secure the loan by the value of the homestead land use rights and assets attached to the homestead land or other assets as prescribed by law.
What are conditions for preferential loans for construction or renovation, repair of housing in Vietnam from August 1, 2024 at the Social Policy Bank? (Internet image)
What are regulations on Loan Term for construction or renovation, repair of housing in Vietnam at the Social Policy Bank
According to Clause 5, Article 48 of Decree 100/2024/ND-CP, the loan term for construction or renovation, repair of housing in Vietnam at the Social Policy Bank is as follows:
Preferential loans for buying, renting social housing; construction or renovation, repair of housing in Vietnam at the Social Policy Bank
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5. Loan term: The loan term is agreed between the bank and the customer in accordance with the customer's repayment ability and does not exceed 25 years from the date of the first loan disbursement.
The loan term for construction or renovation, repair of housing in Vietnam at the Social Policy Bank is agreed between the bank and the customer according to the customer's repayment ability. It should not exceed 25 years from the date of the first loan disbursement.
Loan Amount at the Social Policy Bank for construction or renovation, repair of housing in Vietnam
Based on point b, clause 3, Article 48 of Decree 100/2024/ND-CP, the loan amount for construction or renovation, repair of housing in Vietnam at the Social Policy Bank is as follows:
Preferential loans for buying, renting social housing; construction or renovation, repair of housing in Vietnam at the Social Policy Bank
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3. Loan amount:
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b) In case of new construction or renovation, repair of housing, the maximum loan amount is 70% of the estimated value or the capital use plan, up to 1 billion VND, based on the construction investment unit price, housing construction unit price of the competent authority, and does not exceed 70% of the value of the loan collateral.
Thus, the loan amount for construction or renovation, repair of housing in Vietnam at the Social Policy Bank is up to 70% of the estimated value or the capital use plan, up to 1 billion VND.
In addition, it is based on the construction investment unit price, housing construction unit price of the competent authority, and does not exceed 70% of the value of the loan collateral.
Note: The loan interest rate is equal to the interest rate for poor households as prescribed by the Prime Minister of the Government of Vietnam in each period. The overdue debt interest rate is 130% of the loan interest rate.
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