Adjusting to increase interest rates for social housing loans

Residents of Que Son built houses thanks to preferential loans from the District Branch of the Social Policy Bank in 2023. Photo: Q. VIET

Mr. Hoang Thanh Lan, Head of the Planning and Credit Operations Department (Social Policy Bank, Quang Nam branch), stated that the aforementioned interest rate is equivalent to the current lending rate for poor households, which is 6.6% per year. This lending interest rate has been carefully reviewed, evaluated, and calculated by the competent authority to ensure balance, stability, and long-term sustainability, with a loan term of up to 25 years.

Meanwhile, many argue that raising interest rates from 4.8%/year to 6.6%/year is a significant change, putting considerable pressure on social housing buyers. Furthermore, applying medium and long-term interest rates similar to those for the poor could create anxiety for borrowers because interest rates are likely to change frequently, even annually.

Reportedly, after nearly 10 years of implementing social housing loans, more than 49,000 low-income individuals and disadvantaged workers nationwide have borrowed nearly 21,000 billion VND to buy, rent, or build new social housing, contributing to ensuring social security and helping workers feel secure in production and economic development.

Source: https://baoquangnam.vn/dieu-chinh-tang-lai-suat-cho-vay-nha-o-xa-hoi-3140488.html