Preferential credit for young people: Opening the door to housing

(Chinhphu.vn) – The State Bank of Vietnam (SBV) has just announced that it has implemented a new credit policy specifically for young people under 35 years old to buy social housing. This is a concrete move to implement the Government's direction to promote access to housing for the young workforce.

Deputy Governor Pham Thanh Ha - Photo: VGP/HT

Implementing the direction of the Government and the Prime Minister in Resolution 46/NQ-CP, 77/NQ-CP, Directive 05/CT-TTg and Notice 120/TB-VPCP, on May 29, 2025, the State Bank of Vietnam (SBV) issued Official Dispatch No. 4290/NHNN-TD to 9 major commercial banks to implement a preferential credit package for people under 35 years old to buy social housing (NOXH).

Accordingly, the State Bank of Vietnam requires commercial banks to continue promoting the social housing loan program, workers' housing, and renovation of old apartments according to Resolution 33/NQ-CP. However, for young people under 35 years old, the interest rate support will be more preferential to increase housing access for this workforce.

Specifically, customers under 35 years old when signing a loan agreement to buy social housing will be applied an interest rate 2% lower than the average interest rate for medium and long-term loans in VND of 4 state-owned commercial banks (including Agribank , BIDV, Vietcombank, VietinBank) in the first 5 years from the date of disbursement. Until June 30, 2025, the applicable interest rate is 6.1%/year.

After the first 5-year preferential period, borrowers will continue to enjoy an interest rate 1% lower than the above average rate for the next 10 years. Furthermore, from July 1, 2025, the State Bank will update interest rates every 6 months, applicable to each specific period.

Notably, the capital for implementing this program is not taken from the state budget but from the banks that have registered to participate in the Social Housing Program under Resolution 33. This is a plan that both ensures effective support for people and does not put pressure on the fiscal budget.

In order for the policy to be implemented synchronously, the State Bank of Vietnam requests commercial banks to urgently apply it from May 31, 2025. At the same time, banks must also strengthen communication to ensure that beneficiaries are promptly informed to register for loans.

With this move, it is expected that tens of thousands of young people across the country will have the opportunity to realize their dream of settling down in big cities, thereby stabilizing their lives and developing long-term careers.

At the Conference on implementing Resolution No. 201 of the 15th National Assembly on piloting a number of specific mechanisms and policies for social housing development chaired by Prime Minister Pham Minh Chinh on the afternoon of June 2, Deputy Governor Pham Thanh Ha said: From the beginning of 2025, the State Bank issued Official Dispatch No. 55/NHNN-TD allowing commercial banks participating in the social housing lending program not to include outstanding loans in the annual credit growth target. Not stopping there, the State Bank also continuously adjusts processes and procedures to create the most favorable conditions for people and businesses to access capital sources.

In particular, the State Bank of Vietnam has coordinated with the Ministry of Construction to organize more than 10 conferences to promote the implementation of the program, along with a series of documents directing local bank branches to coordinate with the government and investors to remove obstacles for each specific project. This determination partly shows the efforts of the banking sector in concretizing policies from the central to the grassroots level.

However, the Deputy Governor said: The disbursement speed is still not as expected, the report shows that only about 100 projects nationwide have been announced to participate in the program, of which only 53 projects have accessed loans. 28 projects do not need loans, mainly because they do not need capital or have mobilized capital from buyers; the rest are in the process of appraisal or approaching banks.

"Due to the shortage of social housing supply, banks have difficulty disbursing loans even though they have resources ready. In addition, many localities have not yet announced the list of participating projects, or have announced them late, causing passive coordination and lack of information," Deputy Governor Pham Thanh Ha stated the reason.

Besides the overall program according to Resolution 33, a notable highlight is the implementation of a separate credit package for young people under 35 years old to buy social housing.

This policy demonstrates the State's priority for urban youth, workers and low-income earners in society, contributing to solving the housing problem for the young workforce, which is a pillar of sustainable development.

Mr. Minh

Source: https://baochinhphu.vn/tin-dung-uu-dai-cho-nguoi-tre-mo-rong-canh-cua-an-cu-102250603211044815.htm