What is the interest rate for loans for housing assistance in 2022?

What is the interest rate for loans for housing assistance in 2022??

1. Loans for housing interest rate in 2022

The interest rate applied by commercial banks in 2022 for outstanding loans for housing loans as prescribed in Circular 11, Circular 32 and Circular 25 is 4.8%/year.

This interest rate remains unchanged from 2021 but it is lower by 0.2 percent compared to the interest rates of 2019 and 2020.

2. Subjects of application

According to Point a, Clause 2, Article 1 of Circular 11/2013 (amended and supplemented in Clause 1, Article 1 of Circular 32/2014), subjects of application (hereinafter referred to as customers) include:

- Officials, public employees, armed forces and low-income subjects who borrow capital to buy, rent, lease-purchase social housing and rent and buy commercial houses with an area of ​​less than 70 m2, selling price less than 15,000,000 VND/m2;

- Officials, public employees, armed forces, workers, employees with low income having difficulties when buying commercial housing at housing development projects, investment projects of building an urban area in the area approved by a competent authority with the total value of the sale and purchase contract (including house and land) not exceeding VND 1,050,000,000;

- Officials, public employees, armed forces, workers who already have residential land in accordance with the planning but still having difficulty in housing and not having received any form of support from the State to get loans for construction or renovate and repair their houses;

- Households and individuals that have investment plans to renovate or build new social houses in accordance with the provisions of law for lease, lease purchase and sale to employees, labor operating in industrial parks, small and medium industrial clusters, export processing zones, economic zones, high-tech zones, industrial and handicraft production establishments, factories and enterprises (including inside and outside industrial zones) of all industries and occupations of all economic sectors;

Employees of all economic sectors in urban areas;

Students, students of universities, colleges, professional secondary schools, vocational colleges, vocational schools and vocational schools for workers (regardless of whether public or non-public);

Other subjects eligible for social housing settlement according to the provisions of Decree 188/2013/ND-CP on development and management of social housing;

- Enterprises being investors of social housing construction projects, enterprises being investors in commercial housing projects may convert their functions into social housing projects announced by the Ministry of Construction from time to time.

3. Banks providing loans

According to Point b, Clause 2, Article 1 of Circular 11/2013 (amended and supplemented in Clause 1, Article 1 of Circular 32/2014), the Banks providing loans specified in this Circular include:

- Commercial banks where the State holds more than 50% of charter capital, including:

+ Vietnam Agriculture and Rural Development Bank;

+ Joint Stock Commercial Bank for Investment and Development of Vietnam;

+ Joint Stock Commercial Bank for Industry and Trade of Vietnam;

+ Joint Stock Commercial Bank for Foreign Trade of Vietnam;

+ Joint Stock Commercial Bank for Housing Development in Cuu Long River Delta;

- Other joint-stock commercial banks designated by the State Bank.

Within 30 days from the effective date of this Circular, joint-stock commercial banks with the request to register for application shall send a written request to participate in the housing loan program using the form in Appendix No. 04 attached to this Circular on the State Bank.

The State Bank shall base on the banks' scale, scope of operations and experience in providing loans in the field of real estate investment and business to consider and decide.

Decision 1956/QD-NHNN takes effect from January 1, 2022.

Bao Ngoc

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