Interest rate of 4.8%/year for loans for purchase of social housing at VBSP in Vietnam

Interest rate of 4.8%/year for loans for purchase of social housing at VBSP in Vietnam

The preferential lending interest rate at Vietnam Bank for Social Policies applies to concessional loans for purchase, lease, lease purchase of social housing; construction, renovation, repair of housing according to the provisions of Article 16 of Decree 100/2015/ND-CP, Clause 10, Article 1 of Decree 49/2021/ND-CP is 4.8%/year.

Vietnam Bank for Social Policies shall take full responsibility for the contents and data of reports and proposals.

Decision 486/QD-TTg takes effect from May 10, 2023, to December 31, 2024.

 Entities eligible for incentive policies on social housing in Vietnam

If the entities below satisfy requirements prescribed in Article 51 of the Law on Housing 2014, they shall be eligible for incentive policies on social housing:

- People with meritorious services to the Resolution prescribed in law on preferential treatment for people with meritorious services to the Resolution;

- Individuals living in low income, poverty or near poverty in the urban areas;

- Employees working in enterprises inside or outside the industrial zones;

- Commissioned officers, professional and technical non-commissioned officers, standing army, and workers in the agencies of People’s Police and People’s Army;

- Officials and civil servants prescribed in law on officials and civil servants;

Conditions for concessional loans for purchase of social housing for households and individuals in Vietnam

In order to take out a loan for purchase or lease purchase of social housing, a household or individual must:

- Have enough capital to participate in the loaning program of Vietnam Bank for Social Policies or a credit institution appointed by the State;

- Have adequate documentary evidence specified in Article 22 of Decree 100/2015/ND-CP;

- Have sources of income and be able to pay debt as agreed with Vietnam Bank for Social Policies or a credit institution appointed by the State;

- Have a request for grant of loan for purchase or lease purchase of social housing which contains a commitment that the applicant and other members in the household have not benefited from any housing or residential land assistance policy in any shape or form in their place of residence;

- Have a contract for purchase or lease purchase of social housing with the investor according to regulations of this Decree and law on housing;;

- Take a mortgage as prescribed by law. The lending bank, the investor, and the borrower must specify the method for management and settlement of collateral in the tripartite contract.

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