Reduced social housing loan interest rates for people under 35 years old

From now until the end of 2025, people under 35 years old will be eligible for an interest rate of 5.9% per year to borrow to buy social housing.

According to a document recently issued by the State Bank, the lending interest rate of commercial banks for young people under 35 years old to buy social housing will be 2% lower per year than the average medium and long-term lending interest rate of Agribank , BIDV, Vietcombank and VietinBank. This interest rate is determined in the first 5 years from the time of disbursement.

From now until December 31, the interest rate applied to social housing loans for young people is 5.9% per year, 0.2% lower than before. In the next 10 years, this interest rate is determined to be 1% lower per year than the average medium- and long-term loan interest rate of the Big4 banking group.

For investors in social housing projects, worker housing projects, and renovation of old apartments, the interest rate from now until the end of the year will also be reduced to 6.4%.

Một dự án nhà ở xã hội tại Hải Phòng. — A social housing project in Hai Phong .

Since its application in April 2023, the VND120,000 billion preferential loan package for social housing and workers' housing has had its interest rate reduced four times. In the period from July to December 2023, the interest rates for home loans and investor loans are expected to be 8.2% and 8.7%, respectively.

In the first half of 2024, the interest rate will decrease to 7-8% and will decrease by another 1% by the end of the year. Since the beginning of this year, the State Bank has announced a reduction in the interest rate of the above loan package to 6.1% for home buyers and 6.6% for investors.

According to regulations, every 6 months the State Bank will announce the preferential lending interest rates for banks participating in the above program. The resources to implement this credit package come from the capital of 9 participating banks (including 4 state-owned banks and HDBank , TP Bank, VPBank, MB, Techcombank).

In addition to the low-income group, earlier this year Prime Minister Pham Minh Chinh requested the State Bank and banks to research preferential credit packages for both supply and demand to develop social housing and housing for people under 35 years old.

As of mid-May, the amount of social housing loans disbursed from the VND120 trillion package reached about VND3,400 billion, equivalent to 2%. Of this, about VND2,940 billion was for investors in 21 projects, the rest were for home buyers. In the first four months of this year alone, the amount of disbursed money reached more than VND550 billion.

Explaining the reason for low disbursement, according to the Ministry of Construction, the supply of social housing is still limited, while many investors do not meet the conditions for borrowing or ensuring outstanding debt conditions... In addition, the interest rate of the preferential loan package is still considered high, while the loan term is short, so it has not attracted businesses and people to borrow capital.

vnexpress.net

Source: https://baolaocai.vn/giam-lai-suat-vay-mua-nha-xa-hoi-cho-nguoi-duoi-35-tuoi-post647822.html