The preferential interest rate for social housing does not exceed 50% of the normal interest rate
The State Bank of Vietnam has just issued Circular No. 20/2021/TT-NHNN (Circular 20) amending and supplementing some articles of Circular No. 25/2015/TT-NHNN dated December 9, 2015. The Governor of the State Bank of Vietnam shall guide the provision of preferential loans to implement social housing policies.
Accordingly, Circular 20/2021/TT-NHNN sets forth the principles that preferential lending rates should not exceed 50% of the average lending rates of commercial banks in the same period.
Preferential lending interest rates for customers to build new or renovate or repair residential houses shall be determined and announced by the State Bank from time to time.
Circular 20 also adds borrowers for new construction or renovation and repair of residential houses specified in Clause 1, Article 16 of Decree 100/2015/ND-CP.
Decree 100 is a document detailing and guiding the implementation of some articles and clauses on the development and management of social housing specified in Housing Law No. 65/2014/QH13.
Article 16 of Decree 100 is the content of provisions on preferential loans for purchase, rent, and social housing; building new or renovating, repairing houses for a living.
Subjects eligible for loans under Clause 1, Article 16 of the Decree are those specified at intervals 1, 4, 5, 6, and 7, Article 49 of the Housing Law.
Specifically, these subjects include: People with meritorious services to the revolution according to the provisions of the law on preferential treatment of people with meritorious services to the revolution; low-income people, poor households and near-poor in urban areas; employees who are working in enterprises inside and outside the industrial zone; officers, professional non-commissioned officers, professional and technical non-commissioned officers, professional soldiers, workers in agencies and units of the People's Public Security and the People's Army; cadres, civil servants and public employees according to the provisions of the law on cadres, public servants and public employees;
For customers taking preferential loans for new construction or renovation or repair of their houses, the maximum loan amount is 70% of the estimated value or the loan plan, not exceeding 500 million VND and not more than 70% of the value of the loan security asset.
The loan term is agreed upon by the bank and the customer following the customer's ability to repay and must not exceed 25 years from the date of first loan disbursement.
The Monetary Policy Department is the focal point to advise the Governor of the State Bank in determining and announcing the preferential lending interest rates of the designated credit institutions for the customers.
Quote from the source
Chi Tin