Detailed instructions on the 120,000 billion VND package for cheap home loans

Based on the consensus and participation documents of 4 banks including Agribank , BIDV, Vietcombank, VietinBank, the State Bank officially issued specific instructions related to the 120,000 billion VND package.

The program's loan beneficiaries include home buyers, investors of social housing projects , workers' housing projects, and projects to renovate and rebuild old apartment buildings on the list of projects announced by the Ministry of Construction .

Customers must meet the conditions to enjoy support policies on social housing, worker housing and renovation and reconstruction of old apartments according to the provisions of law and guiding documents of the Ministry of Construction; meet the conditions for borrowing capital according to the provisions of law.

Each home buyer can only participate in a loan once to buy an apartment in a project in the project list announced by the Ministry of Construction according to regulations. Similarly, each project of the investor can only participate in a loan according to the regulations of this program once.

The disbursement period of the program is until the disbursement turnover reaches 120,000 billion VND, but not later than December 31, 2030. The preferential loan interest rate application period for investors is 3 years from the disbursement date, but not exceeding the loan term in the initial loan agreement. Home buyers are entitled to the preferential loan interest rate for a period of 5 years from the disbursement date, but not exceeding the loan term in the initial loan agreement.

The interest rate is 8.7%/year for investors and 8.2%/year for home buyers, applicable until June 30 this year. From July 1, every 6 months, the State Bank will announce the preferential lending interest rate for commercial banks participating in the program.

Hướng dẫn chi tiết về gói 120.000 tỷ đồng cho vay mua nhà giá rẻ - 1 — Officially implementing a 120,000 billion VND credit package for social housing (Photo: Ha Phong).

The operator requested Agribank, BIDV , Vietcombank, and VietinBank to urgently implement the program from April 1 and issue unified instructions throughout the system on program implementation.

In addition to the "Big 4" banks, other commercial banks participating in the program must follow the instructions in this document and report to the State Bank.

According to the State Bank's assessment, the VND120,000 billion credit package is one of the indirect solutions to improve the current imbalance between supply and demand for housing in the real estate market , especially in the low-cost housing segment.

Updating on lending activities in the real estate sector since the beginning of the year, Director of the Credit Department (State Bank) Ha Thu Giang said that by the end of February, outstanding loans in the real estate sector had reached over VND 2.6 million billion, an increase of 2.19% compared to the end of 2022. Of which, outstanding loans for real estate business increased by 6.45% and real estate for self-consumption and use increased by 0.25%.

In terms of structure, outstanding loans for real estate business still account for 33% of total outstanding loans in this sector, equivalent to more than VND 858,000 billion, while the remaining 67% (equivalent to more than VND 1.74 million billion) is loans for self-used real estate.

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