The draft decree specifies that households and individuals investing in the construction, repair, and renovation of housing to be eligible for social housing rental policies can borrow preferential loans according to the following regulations:
Having sufficient minimum capital to participate in the loan method according to the regulations of the Social Policy Bank or credit organizations designated by the State.
Having the ability to repay debts as committed to the lending institutions.
Having a loan application to build or renovate, repair housing.
Having a certificate of land use rights, ownership of housing and other assets attached to the land for housing projects that need to be constructed, renovated or repaired.
Having a cost calculation plan, a construction permit for cases where a construction permit is required according to construction laws. In cases where the construction permit has a valid term according to the regulations of the law, it will be considered for appropriate loans corresponding to the existing term of the project.
Implementing by ensuring loan money with the value of land use rights and assets attached to land or other assets according to the regulations of the law.
The loan amount, loan term, repayment of principal and interest, interest rate, and disbursement of loans shall be implemented as prescribed in Clauses 2, 3, 4, 5, and 6 of this Decree.
Investors of social housing construction projects are not required to use public investment capital or union financial resources
In addition, the draft decree regulates preferential loans for investors of social housing construction projects that are not required to use public investment capital or union financial resources.
In particular, investors of social housing construction projects that are not required to use public investment capital or union financial resources are eligible for loans with preferential interest rates according to the following regulations:
Loan eligibility conditions
Having the housing development investment project approved by competent authorities according to the regulations of investment laws;
Having been granted land allocation or land use rights according to the regulations of land and completed compensation and site clearance;
Having been granted a construction permit for cases requiring a construction permit according to the regulations of construction laws;
Having a minimum level of capital participation in the project, loan plan according to the regulations of credit institutions for loans;
Implementing by ensuring loan money, mortgage of loans according to the regulations of the law.
Loan amount
For social housing construction projects for sale or rental purchase: The maximum loan limit is equal to 70% of the total investment of the project, loan plan and does not exceed 70% of the value of assets securing the loan money;
For social housing construction projects only for rental: The maximum loan limit is equal to 80% of the total investment of the project or loan plan and does not exceed 80% of the value of assets securing the loan money.
Loan term
For social housing investment projects for sale, the minimum loan term is 5 years and the maximum term is not more than 10 years from the date of the first disbursement of the loan;
For social housing construction projects for rental purchase, the minimum loan term is 10 years and the maximum term is not more than 15 years from the date of the first disbursement of the loan;
For social housing construction projects only for rental, the minimum loan term is 15 years and the maximum term is not more than 20 years from the date of the first disbursement of the loan;
In the case that customers have a demand for loans with a term shorter than the minimum loan term prescribed in the above 3 cases, it will be agreed upon with the bank regarding the loan term shorter than.
Performing the repayment of principal and interest: according to the regulations of the lending organization.
Interest rate
The preferential loan interest rate of the Social Policy Bank is decided by the Prime Minister according to the proposal of the Board of Directors for each period;
The preferential loan interest rate of credit organizations determined and published by the State Bank of Vietnam, based on the principle of not exceeding 50% of the average lending interest rate of banks in the market during the same period.
Disbursement of loan capital: Loan capital is disbursed according to the progress of implementation and proposals of investors. The amount of each disbursement is based on the completed volume of the work at technical stopping points.
