New regulation of Vietnam on preferential loan interest rates for purchasing social housing and housing for workers

Preferential loan interest rates for purchasing social housing and housing for workers

Preferential loan interest rates for investing in projects and purchasing houses of projects on social housing, housing for workers, and projects on renovation and reconstruction of old apartment buildings are as follows:

- Loan interest rates during the preferential period:

+ 8,7% per year for investors, applicable until the end of June 30, 2023;

+ 8,2% per year for buyers, applicable until the end of June 30, 2023;

From July 1, 2023, every 6 months, the State Bank of Vietnam shall notify commercial banks participating in the Program of loan interest rates during the preferential period.

- Loan interest rates when the preferential period expires:  

Commercial banks and their customers shall negotiate and agree on loan interest rates conformable to the law. The determination of such interest rates shall be conducted clearly or displayed in the concluded loan agreements.

Eligible borrowers  

According to the Official Dispatch, eligible borrowers are juridical persons and individuals investing in projects and purchasing houses of projects on social housing, housing for workers, and projects on renovation and reconstruction of old apartment buildings included in the list of projects disclosed by the Ministry of Construction of Vietnam, including:

- Investors of projects.

- Buyers of houses of projects.

Principles of preferential loans for purchasing social housing and housing for workers

Principles:

- Customers shall satisfy conditions for eligibility for policies on support for social housing, housing for workers, and renovation and reconstruction of old apartment buildings according to the law and guiding documents of the Ministry of Construction of Vietnam and loan eligibility criteria according to the law.

- Each house buyer may only take out a loan according to this Program once to buy an apartment of a project included in the list of projects disclosed by the Ministry of Construction of Vietnam according to regulations. Each project of investors may only be eligible for capital loans according to this Program once.

See more details in Official Dispatch No. 2308/NHNN-TD, promulgated on April 1, 2023. 

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