New VND145,000 billion package commits to disbursing 5.7%, State Bank wants to loosen income criteria

Slow disbursement due to lack of supply and strict conditions

According to Deputy Governor of the State Bank of Vietnam Pham Quoc Dung, the State Bank of Vietnam is currently assigned to implement 3 credit programs related to social housing development. The first program is the 120,000 billion VND program, to date 9 banks have registered to participate with an amount of 145,000 billion VND, exceeding the prescribed level of 120,000 billion VND. The second program being implemented is a credit program for people under 35 years old. The third program is a social housing loan program according to Decree 100 of 2024 of the Prime Minister .

Regarding disbursement results, by June 30, commercial banks committed VND8,300 billion for 41 social housing projects, which is only about 5.7%. In addition, the Social Policy Bank's outstanding social housing loans under Decree 100 reached more than VND19,000 billion.

For the group of people under 35 years old, there are two programs. One is the social housing loan program. However, because this policy has just been implemented and the supply of social housing is still limited, the outstanding loan balance for people under 35 years old to buy social housing is currently quite modest, only a few tens of billions of VND.

In addition to lending for social housing development, banks have also deployed loan packages for other types of housing. In just a short period of implementation, loans for other types of housing at just 4 state-owned commercial banks have disbursed nearly 20,000 billion VND.

According to the Deputy Governor, the biggest reason for the slow disbursement of the VND145,000 billion package is the lack of supply. The report of the Ministry of Construction mentioned that by the end of July, the number of completed and started projects only reached 59.6% of the progress. Resolution 201 of the National Assembly has removed many difficulties and obstacles, but this Resolution has just been issued and Decree 192 of the Government guiding the implementation of this Resolution has only taken effect from July 1, not yet had time to take effect. The Deputy Governor expects that when all these policies take effect, the supply of social housing will increase, at which time the disbursement of the banking sector will be more feasible.

The second difficulty is related to the borrower. The current regulations on borrowers are quite strict, applied uniformly across the country while the average income in different localities is not reasonable. Therefore, the State Bank agrees with the proposal of the Ministry of Construction to consider adjusting the income criteria as mentioned.

Home loan interest rates for poor households are too high

According to the State Bank, the VND120,000 billion package (currently VND145,000 billion) has had its lending interest rate adjusted six times since its issuance. Accordingly, the State Bank has directed credit institutions to reduce lending interest rates from 8.2% at the beginning to only 6.4% and for borrowers to only 5.9%/year. This lending rate is lower than the lending rate for poor households according to Decree 100 that the Social Policy Bank is lending at 6.6%/year.

Regarding this content, Deputy General Director of the Social Policy Bank Vuong Van Minh said that as of July 31, localities have entrusted over 1,600 billion VND to the social housing lending system. Regarding interest rates, the Policy Bank will coordinate to implement interest rate reductions appropriate to the current time and suitable to socio -economic development conditions in the coming time.

According to the plan from now until 2030, the capital demand (especially in the last 2 years) is expected to complete over 500,000 apartments. The Policy Bank has proactively coordinated with localities to review the demand, and it is expected that by 2030, social housing credit at the Policy Bank will be about 33,000 billion VND. Therefore, the Policy Bank recommends that the Ministry of Finance ensure a balance of budget capital transfer to implement the program.

To promote the disbursement of social housing credit in the coming time, Deputy Governor Pham Quang Dung proposed that the Ministry of Construction try to review and remove difficulties and obstacles for projects to speed up progress and increase supply for the market. At the same time, the Government should soon issue a Decree on the National Housing Fund as required in Resolution 201 of the National Assembly.

For the People's Committees of provinces and cities, the State Bank recommends that the targets on social housing be completed as planned to ensure supply to the market, and that detailed regulations on social housing support for people living far from their workplaces be issued soon, specifically detailed regulations on distance...

Source: https://baodautu.vn/goi-145000-ty-dong-moi-cam-ket-giai-ngan-57-ngan-hang-nha-nuoc-muon-noi-tieu-chi-ve-thu-nhap-d362913.html