Preferential loans help low-income people settle down.

Implementing the government's preferential loan policy for social housing, the capital from the Duc Linh branch of the Vietnam Bank for Social Policies (VBSP) has helped many low-income households turn their dream of owning a home into reality, building a more stable and sustainable life.

Disbursing loans to people.

The joy of a stable home.

In her red-tiled house in Duc Tai 8 village, Hoai Duc commune, Ms. Cao Thi Kim Chi, a kindergarten teacher in the commune, couldn't hide her joy as she recalled the journey of building her family home. Married since 2015, she and her husband used to live in a small, cramped house with only one bedroom and a small kitchen. “When the children grew up, the house only had one bedroom, making daily life very inconvenient. The money we saved over the years was only enough to renovate the room; we didn't dare think about building a new house,” she recounted. Knowing about the social housing loan program, she boldly applied for a 500 million VND loan to build a new house. The loan is repaid gradually over 17 years with preferential interest rates, helping her family ease financial pressure.

Thanks to their sturdy house, Ms. Chi and her husband can confidently tend to their 2 hectares of rubber trees, ensuring a stable income and timely debt repayment. Mr. Huynh Quang Ngoc, Ms. Chi's husband, added: “For young couples, saving 700 million VND to build a house is very difficult. Borrowing from commercial banks with high interest rates is unaffordable. Saving takes a very long time, while our children are growing and our house is getting cramped. Thanks to the government 's preferential loan program, with low interest rates, long repayment periods, and manageable monthly payments, we can work and repay the debt more easily.” The new house is not only an asset but also a motivation for the young couple to work and raise their children in better conditions.

In Sung Nhon 2 village, Nam Thanh commune, the newly completed house of Ms. Tran Thi Muoi, a kindergarten teacher, is a great joy for her and her three children. After buying land, and facing financial difficulties, she hadn't yet considered building a house when the Duc Linh branch of the Vietnam Social Policy Bank approved a 400 million VND loan from the Social Housing Loan program. “My husband passed away early. The low-interest loan policy has helped me build a house for my children. Now my children and I can live in a sturdy house, and I am truly grateful,” Ms. Muoi shared.

Her two children, one in 11th grade and the other in 8th grade, now have stable places to study. Ms. Muoi regularly pays the interest monthly, repays the principal every six months, and always on time. "Now that the interest rate has dropped to 5.4% per year, I just went to the commune office to sign the contract addendum, and I feel much more at ease," she said with a gentle smile.

Expanding housing opportunities

Mr. Dang Quoc Thanh, Deputy Director of the Duc Linh Branch of the Vietnam Bank for Social Policies (VBSP), said that to date, the unit has disbursed loans to 55 customers under the social housing program, with a total outstanding balance of over 23.2 billion VND. This preferential capital has helped many households, especially teachers, young civil servants, and low-income workers, to stabilize their housing, creating conditions for them to work with peace of mind and commit to the locality in the long term. However, Mr. Thanh also said that although the capital is still abundant, the actual demand for loans from the people is still not high, partly because people in remote areas have limited access to information and loan procedures.

Notably, the government has just adjusted the interest rate for social housing loans down to 5.4% per year, instead of the previous 6.6% per year. According to Mr. Thanh, this policy has created more motivation and opportunities for many local households to access capital more easily.

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Previously, high interest rates made many households hesitant to borrow. Now, with lower interest rates, people are more optimistic, and the number of new loan applications is gradually increasing. Households that had borrowed before are also very happy to have their interest rates reduced as per regulations.

Mr. Dang Quoc Thanh, Deputy Director of the Duc Linh Branch of the Vietnam Bank for Social Policies.

Source: https://baolamdong.vn/nguon-von-uu-dai-giup-nguoi-thu-nhap-thap-an-cu-401906.html