Who are social housing loans at an interest rate of 4.8% in 25 years?

Social Policy Bank (SPB) has issued Guidelines for concessional lending operations to purchase, lease purchase of social housing; new construction or renovation and repair of buildings for shelter. When this program is implemented will open a lot of hope for the poor and low-income people, policy beneficiaries have more favorable conditions for access to social housing.

According to the guidelines, eligible borrowers, including those who have contributed to the revolution under the provisions of the law on preferential treatment of people with the revolution; Low-income people, the poor and near poor in urban areas; Laborers working in enterprises in and outside industrial parks; Officers, professional noncommissioned officers, noncommissioned officers and technical expertise, professional military personnel, workers in agencies and units of the people’s police and the people’s army; Officials and public servants as prescribed by law for officials and public servants.

Except for those who have contributed to the revolution under the provisions of the law on preferential treatment of people with the revolution; The remaining objects to get loans which are not subject to regular income tax payment in accordance with the law on personal income tax; cases are poor, near poor, it must belong to the poor, near poor as stipulated by the Prime Minister.
When this program is implemented will open a lot of hope for the poor and low-income people, policy beneficiaries have more favorable conditions for access to social housing.

When this program is implemented will open a lot of hope for the poor and low-income people, policy beneficiaries have more favorable conditions for access to social housing.

On loan conditions, guidelines stipulates that when a loan at SPB, the borrower must meet the following conditions:

Firstly, to make monthly savings deposit at the time VBSP send a minimum of 12 months from the date of signing the credit agreement with the SPB. Send monthly rate at least equal to the monthly repayment of the loan.

Second, there is sufficient equity capital of at least 20% of the sale and purchase contract / lease-purchase contract for social housing loans to purchase / lease-purchase social housing; At least 30% of the estimate or calculate the plan costs for loans for the construction or renovation and repair of dwelling houses.

Third, have the proven record of the object, the housing situation, the conditions of residence and income in order to enjoy social housing policy as prescribed.

Fourth, have income and ability to repay their commitments with SPB.

Fifth, there is the request for a loan to purchase / lease-purchase social housing / construction / renovation and repair of residential properties, including the commitment of individuals and members of families that have not been preferential loans to support social housing in other banks or other credit institutions.

For a loan to purchase or lease-purchase social housing: There are contracts to buy or hire-purchase social housing projects with investors that the investor’s project in the portfolio, including projects to build social housing Assembly under the program, plans to invest in social housing by the competent authority for approval.

For loans for new construction or renovation, repair garage in: There is a certificate of land use rights, ownership of houses and other assets attached to the land where the permanent registration by the competent State agencies rights granted under the provisions of the law on land; design, cost estimates or plans for cost calculations under the provisions of law on construction.

Besides implementation procedures of loan security requirements: For a loan to purchase or lease purchase of social housing: Loans secured by assets formed from the loan in accordance with the law. SPB lenders, investors and borrowers have agreed in a trilateral agreement on how to manage and handle the security property. For loans for new construction or renovation, repair garage in: Loans secured by the value of land use rights and assets attached to land or other property in accordance with law.

On the lending limit, written regulations, case purchase, hire purchase social housing: Loan size maximum of 80% of the purchase contract, hire purchase social housing. Where new construction or renovation, repair garage at: Loan size maximum 70% of the budget or plans for cost calculations and do not exceed 70% of the value of the assets securing loans.

Lending rates by the Prime Minister to decide for each period. Delinquency rate by 130% lending rate. To end on 31/12, the lending rate of the program is 4.8% / year as decided by the Prime Minister.

The minimum loan duration is 15 years and maximum of 25 years from the date of disbursement of the first loan. Where the loan has a term demand is lower than the minimum loan term, the agreement with lending VBSP on lower loan term.

Guidance documents have effect from the date of 15/8.