Hanoi proposes to reduce interest rates on social housing loans for 3 groups of subjects

Hanoi People's Committee proposed the loan interest rate for 3 groups of subjects when buying or leasing social housing to be 4.8%/year, instead of 6.6%/year as present.

The Hanoi People's Committee is seeking public opinions on the draft Resolution on loan levels and interest rates for lending to the poor, policy beneficiaries and special beneficiaries from local budget capital entrusted through the Social Policy Bank in Hanoi.

According to the draft, the subjects of application are agencies, units and individuals involved in the management and use of local budget capital entrusted through the Social Policy Bank to lend to the poor, other policy subjects and special subjects of the city.

Housing for low-income workers in Nam Trung Yen, Cau Giay district, Hanoi.

The draft proposes to apply a lending interest rate of 4.8%/year to those borrowing capital from credit programs to buy or lease social housing or housing for the People's Armed Forces. This interest rate also applies to groups of poor and near-poor households, those building or repairing houses; and students borrowing capital to study or work abroad.

For households that have just escaped poverty, borrowers of credit programs to support job creation, job maintenance and expansion... it is proposed to apply a loan interest rate of 6.6%/year.

For production and business establishments borrowing capital under the job training and employment expansion support program, it is proposed to apply a loan interest rate of 6%/year.

According to Hanoi City, in the period of 2026 - 2030, the total loan demand in the city is 641,800, corresponding to a total estimated budget of 55,900 - 83,000 billion VND.

Explaining the above proposal, Hanoi City said that the lending interest rates for credit programs are implemented according to central regulations and have not been adjusted for many years. For example, the lending interest rates for poor households, near-poor households, and households that have just escaped poverty have been applied since 2015; the lending interest rates for job creation have been applied since 2019. Meanwhile, the interest rates at commercial banks tend to decrease, leading to unattractive lending interest rates through the Social Policy Bank.

In addition, the group that enjoys the lowest interest rate when borrowing capital from policy credit programs is currently subject to a loan interest rate of 6.6%/year. Regarding this interest rate, according to Hanoi City, it will be difficult for beneficiaries to cover loan interest costs, reducing the effectiveness of policy credit capital.

Source: https://baotintuc.vn/xa-hoi/ha-noi-de-xuat-giam-lai-cho-vay-mua-nha-xa-hoi-cho-3-nhom-doi-tuong-20250917163849333.htm