Decree No. 100/2024/ND-CP dated July 26, 2024 of the Government detailing a number of articles of the Housing Law on the development and management of social housing. Accordingly, the Vietnam Bank for Social Policies (VBSP) provides preferential loans for the purchase, hire-purchase of social housing, housing for the people's armed forces; construction or renovation, repair of housing with interest rates equal to the lending interest rates for poor households prescribed by the Prime Minister in each period. Recently, the VBSP has adjusted the interest rate for loans for purchase, hire, construction, renovation, and repair of housing from 4.8%/year to 6.6%/year.
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Pursuant to Decree No. 100/2024/ND-CP, from August 1, 2024, the VBSP will increase the interest rate for loans to purchase, hire-purchase social housing, housing for the armed forces; and to build, renovate, and repair houses from 4.8%/year to 6.6%/year. This new interest rate is adjusted to ensure the sustainability of the lending program and reduce the burden on the State budget.
Decree No. 100/2024/ND-CP has brought about a series of notable changes related to social housing lending. One of the notable changes is that the lending interest rate is adjusted according to the lending interest rate for poor households prescribed by the Prime Minister in each period. The overdue debt interest rate is also regulated at 130% compared to the normal lending interest rate. This means that, with the current lending interest rate for poor households at 6.6%/year, the social housing lending interest rate at the Vietnam Bank for Social Policies has also increased by 1.8%/year compared to before.
Many people believe that increasing interest rates from 4.8%/year to 6.6%/year is a big change, causing a lot of pressure for social housing buyers. Moreover, applying medium and long-term interest rates similar to those for poor households can cause insecurity for borrowers because interest rates can change frequently, even annually.
Mr. Nguyen Van Chung - Deputy Director of the Social Policy Bank of Kon Tum province said that the lending interest rate increase from 4.8%/year to 6.6%/year has been summarized, evaluated and carefully calculated by competent authorities during the process of drafting the Government's Decree to ensure balance, stability and long-term, with a loan term of up to 25 years. The draft Decree has been widely consulted with ministries, branches, localities and people to complete and appraise before submitting to the Government for promulgation according to regulations. At the conference to summarize 10 years of implementing Directive No. 40 on strengthening the Party's leadership with social policy credit held on August 14, the Prime Minister requested localities to prioritize the allocation of local budgets entrusted to the Social Policy Bank, especially capital for job creation and social housing loans.
It is known that after nearly 10 years of implementing social housing loans, nationwide, more than 49,000 low-income people and disadvantaged workers have borrowed nearly 21,000 billion VND to buy, rent, and build new social housing, contributing to ensuring social security and helping workers feel secure in production and economic development. According to Decree No. 100/2024/ND-CP, subjects eligible for preferential loans to buy, rent-purchase social housing, houses, build or renovate and repair houses include 8 subjects: People with meritorious services to the revolution, relatives of martyrs who are eligible for housing improvement support according to the provisions of the Ordinance on Preferential Treatment for People with Meritorious Services to the Revolution; Poor and near-poor households in rural areas; Poor and near-poor households in rural areas in areas frequently affected by natural disasters and climate change; Poor and near-poor households in urban areas; Low-income earners in urban areas; Workers and laborers working at enterprises, cooperatives, and cooperative unions inside and outside industrial zones; Officers, professional soldiers, non-commissioned officers of the people's armed forces, police workers, civil servants, defense workers and public employees currently serving in the army; people working in cryptographic work, people working in other jobs in cryptographic organizations receiving salaries from the state budget currently working, and cadres, civil servants and public employees according to the provisions of the law on cadres, civil servants and public employees.
Duc Vinh
Source: http://baokontum.com.vn/kinh-te/dieu-chinh-lai-suat-cho-vay-nha-o-xa-hoi-dam-bao-can-doi-nhieu-yeu-to-43187.html
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