BIDV pledges massive credits for low-cost housing projects
06-01-2013
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| Representatives of BIDV and the Ministry of Construction sign the agreement on the low-cost housing development program in Hanoi last Friday - Photo: Courtesy of BIDV |
Under the deal the bank cut with the Ministry of Construction in Hanoi on Friday, BIDV will provide over VND10 trillion worth of middle- and long-term loans with preferential interest rates for low-cost home developers, and nearly VND20 trillion for home buyers. This is the biggest credit package ever for the property sector.
Specifically, project owners will be offered loans of up to VND10.5 trillion, with the maximum lending for each project is 70% of its total investment cost and a maximum term of five years.
In order to be granted loans, project owners must develop low-cost or commercial houses with size of below 70 square meters each and price of less than VND15 million a square meter.
Meanwhile, VND19.5 trillion will be set aside for homebuyers. They can take out loans worth as much as 85% of the home value with lending rates at 90% of the average lending rate in the market and a maximum term of 15 years.
Loans will be given to low- and middle-income earners and households eligible for resettlement policies. Localities in need of houses for resettlement and for families under preferential treatment policy can also gain access to such loans.
The construction ministry and BIDV agreed to form a working group to deploy the program.
According to BIDV, the program is aimed to remove difficulties for the property market, especially the segments of low-cost and commercial housing for low- and middle-income earners. In addition, it will study and propose solutions to rescue the property market and the building material sector to the National Assembly, the Government and relevant ministries and localities.
The housing-related outstanding loans of BIDV have reached nearly VND15.8 trillion, accounting for 5.3% of the bank’s total outstanding loans.
