Interest rate is only 5.4%/year: Who is eligible to borrow to buy social housing at the Social Policy Bank?

Eligible borrowers

According to the guidelines of the Vietnam Bank for Social Policies (VBSP), the social housing loan program applies to the following groups as stipulated by housing laws: people with meritorious services to the revolution; low-income earners, poor households, and near-poor households in urban areas; workers employed in enterprises inside and outside industrial zones; officers, non-commissioned officers, technical specialists, professional soldiers, and workers in the People's Public Security and People's Army; and cadres, civil servants, and public employees.

For borrowers purchasing or renting social housing , eligible groups include low-income earners, laborers, members of the armed forces, and civil servants who are exempt from regular personal income tax as stipulated by law. In the case of poor or near-poor households, they must meet the poverty and near-poverty standards set by the Government for each period.

The Social Policy Bank's preferential loan program for social housing currently applies an interest rate of 5.4% per year, with a maximum loan term of 25 years.

Preferential interest rate of 5.4% per year.

According to the Vietnam Bank for Social Policies (VBSP), the interest rate applied to the preferential loan program for social housing is currently 5.4% per year.

This is the interest rate applied to loans under the social housing policy credit program implemented by the Vietnam Bank for Social Policies (VBSP).

You can borrow up to 80% of the home purchase contract value.

Buyers or leaseholders of social housing can borrow up to 80% of the contract value. The loan is disbursed directly at the branch or transaction office of the Vietnam Bank for Social Policies (VBSP) where the project is located.

To be eligible for a loan, borrowers must have complete documentation proving they are eligible for social housing policies; meet the housing, residency, and income requirements as stipulated; and have a source of income and the ability to repay the loan as committed to the Social Policy Bank.

One of the mandatory conditions is that borrowers must deposit monthly savings at the Vietnam Social Policy Bank for a minimum of 12 months from the date of signing the loan agreement. The minimum monthly deposit amount must be equal to the average principal repayment of the loan.

In addition, borrowers must have a Loan Application Form, in which they commit that they and their household members have never received any form of housing or land support policy in their place of residence.

Borrowers must also have a purchase or lease-purchase contract for social housing with a project developer whose project is on the list of social housing projects approved by the competent authority; and have at least 20% of the contract value as their own capital.

According to regulations, the loan is secured by assets created from the borrowed capital. The management and disposal of the collateral are carried out according to the agreement between the bank, the investor, and the borrower.

For loans to finance new construction or renovation and repair of housing, the maximum loan amount is 70% of the estimated cost or cost calculation plan, and does not exceed 70% of the value of the collateral.

According to the Vietnam Social Policy Bank (NHCSXH), given the limited capital and high demand for loans, the maximum loan amount for new construction or renovation and repair of housing will be 500 million VND per loan.

Loan terms can be up to 25 years.

According to the program, the maximum loan term is 25 years.

Lending is done directly at the branches or transaction offices of the Vietnam Bank for Social Policies (VBSP). In addition, VBSP delegates some tasks to socio-political organizations including the Vietnam Women's Union, the Vietnam Farmers' Association, the Vietnam Veterans' Association, and the Ho Chi Minh Communist Youth Union.

Borrowers must be members of a Savings and Loan Group established and operating in accordance with the regulations of the Vietnam Bank for Social Policies (VBSP).

Conditions for borrowing to buy or rent-to-own social housing.

According to the Vietnam Bank for Social Policies (VBSP), borrowers who purchase or lease-purchase social housing must fully meet the conditions regarding eligibility, housing, residency, income, and repayment capacity as stipulated by law.

Loan applications must be complete, valid, and certified by the competent authority as prescribed. Those wishing to apply for a loan can contact the branch or transaction office of the Vietnam Bank for Social Policies in their place of residence for guidance on the required documents, procedures, and loan conditions.

Source: CafeLand