This information was provided by Mr. Dao Minh Tu, Deputy Governor of the State Bank, at the press conference on the banking sector’s performance in the first six months and tasks for the latter half of 2024, held on the morning of July 23, 2024.
Deputy Governor Dao Minh Tu speaks at the press conference on July 23, 2024.
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Since April 2023, a VND 120,000 billion credit package for preferential loans for social housing and worker housing development has been expected to contribute to the goal of building one million social housing units by 2030.
Deputy Governor Dao Minh Tu said that the SBV is submitting to the Government for approval to amend the VND 120,000 billion credit package for social housing loans.
In addition to the four state-owned commercial banks (Agribank, BIDV, Vietcombank, and VietinBank), each contributing VND 30,000 billion, four other joint-stock commercial banks have registered to participate, with each contributing VND 5,000 billion, bringing the total credit package to VND 140,000 billion.
Previously, the interest rate support for home buyers was 2% compared to the average interest rate of the four state-owned commercial banks at that time. Now, a proposal is being submitted to determine the interest rate fixation period as once every three months or reduce the interest rate by 3%.
The preferential period has been extended to five years, instead of three years previously. Banks will continue to offer preferential interest rates to borrowers at a minimum of 1-2% lower than commercial loan rates, rather than the current floating rate, depending on the economic situation at that time.
Deputy Governor Dao Minh Tu said that while offering better preferential conditions for home buyers, the SBV also encourages commercial banks and large economic groups to promote social housing and create favorable conditions for low-income earners to own social housing. The lending policy for project owners will remain unchanged.
Regarding the banking sector, we encourage and facilitate harmony through the Social Policy Bank, in line with the current VND 120,000 billion package.
Ms. Ha Thu Giang, Director of the Credit Department for Economic Industries, said that the disbursement of the VND 120,000 billion credit package has been slow because many localities have not yet announced the list of social housing projects (only 34 out of 63 localities have announced).
Of the 78 social housing projects announced by the localities, many project owners do not need to borrow capital. Some projects, when approached by banks, are facing legal procedural obstacles (encountering site clearance problems, not yet started construction…) and therefore do not meet the bank’s lending requirements.
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Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
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