Reduce preferential interest rates for social housing loans

Loans with credit contracts signed with the Vietnam Bank for Social Policies before October 10, 2025 will be adjusted to apply an interest rate of 5.4%/year.

Reducing interest rates on preferential loans for social housing is a strong step in addressing the housing problem for low-income earners and ensuring social security.

On October 10, 2025, the Government issued Decree No. 261/2025/ND-CP amending and supplementing a number of articles of Decree No. 100/2024/ND-CP dated July 26, 2024 of the Government detailing a number of articles of the Law on Housing on the development and management of social housing and Decree No. 192/2025/ND-CP dated July 1, 2025 of the Government detailing a number of articles and measures for implementing Resolution No. 201/2025/QH15 dated May 29, 2025 of the National Assembly on piloting a number of specific mechanisms and policies for the development of social housing, effective from October 10, 2025.

Accordingly, the preferential loan interest rate for purchasing or leasing social housing; purchasing or leasing housing for the armed forces; and constructing, renovating, or repairing housing at the Social Policy Bank is officially set at 5.4% per year. In addition, for loans with credit agreements signed with the Social Policy Bank before October 10, 2025, the credit agreement will be adjusted to apply the 5.4% per year interest rate to the actual principal balance and any overdue principal balance (if any).

Reducing interest rates on preferential loans for social housing is a strong step, concretizing the Party and State's determination to address the housing issue for low-income earners and ensure social security. The regulation allowing adjustments to existing loans also demonstrates humanity, fairness, and encourages people to confidently borrow to buy social housing.

This new credit policy, combined with specific mechanisms regarding land and capital sources as stipulated in Resolution 201/2025/QH15, creates a comprehensive support ecosystem that both addresses supply difficulties and enhances access to capital for homebuyers.

At a press conference announcing the banking performance results for the first nine months of 2025, held in early October, the State Bank of Vietnam stated that the preferential loan program for social housing under Government Resolution 33/NQ-CP and loans for young people under 35 to buy social housing have achieved certain results. Specifically, disbursements reached approximately VND 4,700 billion (an increase of 66.2% compared to the end of 2024).

In addition, many commercial banks have proactively researched and immediately launched loan programs for people under 35 to buy houses; the four state-owned commercial banks alone have disbursed nearly 19,335 billion VND.

Over the past period, the Social Policy Bank system has actively coordinated with Party committees and authorities to review and compile the loan needs of eligible individuals; strengthened the dissemination of information about the social housing loan program to all citizens so that they are aware of and can access it when needed. At the same time, it has organized training on loan procedures, documents, and application processes for communes, entrusted service organizations, and savings and loan groups; based on this, it conducts assessments and disburses loans to eligible customers, ensuring transparency and compliance with regulations.

For detailed information about the social housing loan program, customers are advised to contact the nearest branch of the Social Policy Bank for guidance.

Social housing loan incentive program

The program aims to support groups such as people who have rendered meritorious services to the revolution, relatives of martyrs who are eligible for housing improvement support according to the regulations of the Ordinance on preferential treatment for people who have rendered meritorious services to the revolution; low-income urban residents; workers and laborers working in enterprises, cooperatives, and federations of cooperatives inside and outside industrial zones; officers, professional soldiers, and non-commissioned officers of the People's Armed Forces; defense workers and civil servants currently serving in the military, those working in cryptography, and other personnel working in cryptographic organizations receiving salaries from the state budget; cadres, civil servants, and public employees; poor and near-poor households in rural areas, urban areas, and rural areas frequently affected by natural disasters and climate change.

The policy applies to loans for purchasing or lease-purchasing social housing; purchasing or lease-purchasing housing for the people's armed forces; or constructing/renovating and repairing housing. The total outstanding loan balance to date has reached over VND 19,526 billion with 50,328 customers having outstanding loans.

Source: https://baodautu.vn/giam-lai-suat-uu-dai-cho-vay-nha-o-xa-hoi-d414254.html