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SBV: VND30 trillion for housing assistance loans

16-05-2013

 

According to a posting on the Government website, the new loan programs go into effect June 1 and home buyers and investors can borrow at the annual interest rate of 6% for a period of at least ten and five years respectively.

In December of each year, the interest rate for the following year is to be recalculated, estimated at half of banks’ average lending rates but in no case can the interest rate exceed 6% per annum.

These loans apply to low-income earners, State officials, civil servants and members of the armed forces who plan to buy social homes or commercial homes smaller than 70m2 and priced at below VND15 million ($720) per square metre.

According to the SBV, approximately 30% of the VND30 trillion loan package will be provided for property developers to convert their commercial housing projects to social housing.

The funds are being made available to borrowers through five banks including Agribank, BIDV, Vietinbank, Vietcombank and MHB.

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