The State Bank of Vietnam (SBV) has just issued Official Dispatch 4290/NHNN-TD on lending to people under 35 years old to buy social housing.
Many special offers
Official dispatch 4290 was deployed to 9 banks, including: Vietnam Agriculture and Rural Development ( Agribank ), Vietnam Industry and Trade (VietinBank), Vietnam Foreign Trade (Vietcombank), Vietnam Investment and Development (BIDV), Ho Chi Minh City Development (HDBank), Vietnam Prosperity (VPBank), Vietnam Technological and Commercial Bank (Techcombank), Tien Phong (TPBank) and Military Bank (MB). The State Bank of Vietnam requires these 9 banks to have their own preferential policies for people under 35 years old when borrowing money to buy social housing.
Specifically, on the date of signing the loan agreement, customers under 35 years old who are eligible to borrow capital to buy social housing will be applied a special interest rate. This loan interest rate is 2% lower than the average medium- and long-term loan interest rate in VND of 4 state-owned commercial banks: Agribank, BIDV , Vietcombank, VietinBank in the first 5 years of borrowing capital (from the first disbursement date). The loan interest rate applied until June 30, 2025 is 6.1%/year.
Many banks have begun to implement preferential credit packages for loans to people under 35 years old to buy social housing. Photo: LAM GIANG
In the next 10 years of borrowing, this lending interest rate will be 1% lower than the average medium- and long-term lending interest rate in VND of the four state-owned commercial banks Agribank, BIDV, Vietcombank and VietinBank.
From July 1, 2025, every 6 months, the State Bank will announce the preferential lending interest rates for commercial banks participating in the above program. The capital source for implementing this preferential credit package is from the capital of banks that have registered to participate in the loan program for purchasing social housing, workers' housing, and renovating and rebuilding old apartments according to Resolution 33/NQ-CP (on a number of solutions to remove obstacles and promote the safe, healthy, and sustainable development of the real estate market).
The State Bank of Vietnam requested commercial banks to urgently implement the above policy throughout the system from May 31. At the same time, they should increase communication so that customers eligible for preferential loans can fully grasp information and register for loans when needed.
"Up to now, the credit package from the program under Resolution 33/NQ-CP registered by 9 commercial banks has reached about 150,000 billion VND. This preferential policy for loans for people under 35 years old to buy social housing can be said to be an unprecedented breakthrough, when the resources are from commercial banks but the interest rate is preferential for the first 10 years" - a State Bank official assessed.
Removing the worry of floating interest rates
Agribank is the first bank to announce a preferential credit package for people under 35 years old to borrow to buy social housing, after receiving Official Dispatch 4290 from the State Bank.
Accordingly, Agribank has just announced a preferential credit program of up to VND 10,000 billion, exclusively for young people who want to buy social housing. Agribank representative said that this program is implemented by the Bank for loans disbursed from May 30, 2025 to December 31, 2030 (or until the capital source runs out). The preferential subjects are individual customers under 35 years old who want to borrow capital to buy social housing in legal projects, announced by the Ministry of Construction or the People's Committee of the province or city.
"In addition to transparency in terms of conditions, the highlight of the program is the preferential interest rate policy designed to optimize the borrower's ability to pay in the long term. In the first 5 years from the date of disbursement, the lending interest rate is 2 percentage points lower than the average medium- and long-term lending interest rate in VND of 4 state-owned commercial banks. Particularly from now until June 30, the applicable interest rate is 6.1%/year" - Agribank representative informed.
Many other banks are also preparing to launch preferential credit packages for people under 35 years old to borrow to buy social housing to soon realize the requirements of the State Bank and the Government, helping young people fulfill their dream of settling down.
Speaking to reporters of the Lao Dong Newspaper on the afternoon of June 8, Dr. Nguyen Anh Vu, Head of the Finance Department - Banking University of Ho Chi Minh City, commented that the preferential credit program for borrowers to buy social housing under 35 years old will help to remove the worry of floating interest rates. In fact, in the past, there have been many preferential interest rate home loan packages, but mainly in the first period or 2-3 years, then floating according to the market.
"The interest rate is 2% lower than the medium and long-term loan interest rate of 4 state-owned commercial banks in the first 10 years, which will help people who want to buy social housing feel more secure. The remaining problem is that the market needs more apartment supply in social housing projects that suit the needs and conditions, and have convenient procedures for customers to access" - Dr. Nguyen Anh Vu emphasized.
Many opportunities to realize the dream of owning a house
Along with the latest credit program as required by the State Bank, a series of other commercial banks such as MB, HDBank, BIDV, Saigon Thuong Tin (Sacombank), Saigon - Hanoi (SHB), Asia Commercial Bank (ACB) ... are also implementing preferential credit packages for customers under 35 years old and those who need loans to buy, build/repair houses.
At MB, over VND3,000 billion in outstanding credit has been disbursed to over 2,000 customers after about 1 year of implementing the "Dream Home" loan package exclusively for young customers (statistics up to April 2025). MB is continuing to expand this credit package without limit on scale this year, to help young people realize their dream of owning a house.
Mr. Vu Hong Phu, member of MB's Executive Board, said that with the "Dream Home" loan package, customers can borrow for up to 35 years, with a maximum loan limit of 80% of the property value, assessed at the time of purchase. In the first 5 years, customers only need to pay interest, not principal; in the next 5 years, they only need to pay a minimum of 15% of principal.
At BIDV, after less than 2 months of implementing the credit package for young people to own houses, more than 2,500 loans have been successfully disbursed. According to BIDV, this is a loan package with an unprecedented support policy on the market, with a fixed interest rate of 5.5%/year for the first 3 years; no principal repayment for the first 5 years; loan term up to 40 years. BIDV clearly announced the interest rate after the preferential period, calculated based on the 24-month savings interest rate plus a margin of 3%/year.
Economist - Dr. DINH THE HIEN:
Need social housing projects to meet real needs
Social housing is a very necessary segment, meeting the actual housing needs of a segment of people with low and middle incomes. In the previous stage, many social housing projects were implemented but had to be drawn in lots with many complicated conditions and procedures. As a result, people with real housing needs could not access them or the price was pushed up, and the social housing purchase quota belonged to speculative buyers.
Currently, a series of preferential credit policies and strong guidance from the Government, the State Bank and ministries and sectors are creating a new trend to stimulate the demand for investment and construction of social housing projects by enterprises. When there are many social housing projects that meet the real needs of borrowers, credit packages will also be better absorbed.
Ms. PHUNG THI BINH, Deputy General Director of Agribank:
Large capital waiting for borrowers
Agribank has allocated a large amount of capital for the 1 million social housing project. The bank is looking forward to many social housing projects being implemented in Hanoi, Ho Chi Minh City, etc. In particular, the interest rate for both investors and home buyers in this segment is very preferential, reduced by up to 3% - equivalent to the mobilization interest rate.
Agribank branches in Ho Chi Minh City have abundant capital available to serve lending activities; the need to increase credit capital to the market is very large.
Economist - Dr. NGUYEN TRI HIEU:
Loan interest rates remain high
The interest rate of the social housing loan program for people under 35 years old is still high and unstable. The announced interest rate is 6.1%/year until June 30, 2025, after which it will be adjusted and likely to fluctuate around this level. This interest rate is lower than the commercial interest rate but is still high for the majority of low-income people.
The government wants to implement the social housing program, it must provide capital to commercial banks with very low interest rates, maximum 3%/year and let commercial banks lend at about 5%/year. At that time, people can buy a house for 1.2 billion VND, borrow 1 billion VND and pay the principal and interest each month about 7 million VND/month, which is reasonable with the current common income.
Source: https://nld.com.vn/bung-tin-dung-cho-nguoi-tre-mua-nha-196250608223322486.htm
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