State Bank offers special loans for under-35s to buy social housing
The State Bank of Vietnam (SBV) has just issued Document No. 4290/NHNN-TD on providing loans to people under 35 years old to buy social housing.
Special preferential interest rates
The SBV has instructed nine commercial banks to offer special interest rates for borrowers under 35 years old who are eligible to purchase social housing. The banks include the Vietnam Bank for Agriculture and Rural Development (Agribank), the Vietnam Bank for Industry and Trade (VietinBank), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam (BIDV), HDBank, Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), Techcombank, TPBank, and Military Bank.
Specifically, at the time of signing the loan agreement, eligible borrowers under 35 years old will enjoy a special interest rate that is 2 percentage points lower than the medium and long-term average lending rate in VND of the four state-owned commercial banks: Agribank, BIDV, Vietcombank, and VietinBank. This special rate will be applicable for the first five years of the loan term, starting from the first disbursement date. The interest rate applied until June 30, 2025, is 6.1% per annum.
Several banks have started offering preferential credit packages for under-35s buying social housing. Photo: Lam Giang
For the next ten years of the loan term, the interest rate will be 1 percentage point lower than the medium and long-term average lending rate in VND of the same four state-owned commercial banks.
From July 1, 2025, the SBV will announce the interest rate for the preferential period every six months for the participating commercial banks. The capital source for this preferential credit package comes from the registered capital of the banks participating in the lending program for social housing, worker housing, and renovation and rebuilding of old apartment buildings under Resolution 33/NQ-CP on solutions to promote the safe, healthy, and sustainable development of the real estate market.
The SBV requested the commercial banks to urgently implement this policy throughout their systems from May 31, 2025, and to enhance communication to ensure that eligible borrowers are well-informed and can apply for loans when needed.
“So far, the total credit package registered by the nine commercial banks under Resolution 33/NQ-CP has reached approximately VND 150,000 billion. This special interest rate offer for borrowers under 35 years old purchasing social housing can be considered a breakthrough, as the capital comes from commercial banks, but the interest rate is subsidized for up to the first ten years,” commented an SBV official.
Addressing concerns about floating interest rates
Agribank was the first bank to announce a preferential credit package for under-35s buying social housing, following the issuance of Document No. 4290/NHNN-TD by the SBV.
Agribank has launched a credit program worth up to VND 10,000 billion, exclusively for young people in need of social housing. According to Agribank’s representative, the program is applicable to loans disbursed from May 30, 2025, to December 31, 2030 (or until the capital source is exhausted). Eligible borrowers are individuals under 35 years old who wish to purchase social housing in legal projects announced by the Ministry of Construction or the People’s Committees of provinces and cities.
“In addition to transparent conditions, the highlight of the program is the preferential interest rate policy, which is designed to optimize the repayment capacity of borrowers in the long term,” said the Agribank representative. “For the first five years from the disbursement date, the lending rate is 2 percentage points lower than the medium and long-term average lending rate in VND of the four state-owned commercial banks. From now until June 30, the applied interest rate is 6.1% per annum.”
Several other banks are also preparing to launch preferential credit packages for under-35s buying social housing to promptly meet the requirements of the SBV and the government, helping young people fulfill their dream of owning a home.
Dr. Nguyen Anh Vu, Head of the Finance Department at the University of Banking in Ho Chi Minh City, commented that the credit incentive program for borrowers under 35 years old purchasing social housing would address concerns about floating interest rates. In the past, there have been many preferential loan packages for home buyers, but the preferential rates usually applied only for a short period, after which the interest rate would float with the market.
“An interest rate that is 2 percentage points lower than the medium and long-term lending rate of the four state-owned commercial banks for the first ten years will give peace of mind to those who want to buy social housing. The remaining issue is the need for more social housing projects that meet the demands and conditions of borrowers, along with simplified procedures to facilitate their access to these projects,” emphasized Dr. Nguyen Anh Vu.
Various opportunities to realize the dream of homeownership
Along with the latest credit program instructed by the SBV, several commercial banks, such as Military Bank (MB), HDBank, BIDV, Sacombank, SHB, and ACB, have also been implementing preferential credit packages for borrowers under 35 years old and those in need of loans to purchase, build, or repair houses.
At MB, more than VND 3,000 billion in credit has been disbursed to over 2,000 customers within about a year of implementing the “Dream Home” loan package exclusively for young borrowers (as of April 2025). MB is continuing to expand this credit package without limiting its scale this year to help young people realize their dream of owning a home.
Mr. Vu Hong Phu, a member of MB’s Board of Directors, said that with the “Dream Home” package, customers could borrow for up to 35 years, with a loan limit of up to 80% of the property value assessed at the time of purchase. For the first five years, customers only need to pay interest without repaying the principal; in the next five years, they only need to repay a minimum of 15% of the principal.
At BIDV, after less than two months of implementing the credit package for young people to own houses, more than 2,500 loans have been successfully disbursed. According to BIDV, this package offers unprecedented support in the market, with a fixed interest rate of 5.5% per annum for the first three years, no principal repayment required for the first five years, and a loan term of up to 40 years. BIDV clearly announces the interest rate after the preferential period, which is calculated based on the 24-month savings interest rate plus a margin of 3% per annum.
Experts’ opinions
Dr. Dinh The Hien, Economist:
There is a need for social housing projects that meet the actual demands.
Social housing is a crucial segment that caters to the housing needs of a portion of the population with low and middle incomes. In the past, although there were social housing projects, they often involved complicated conditions and procedures, such as lotteries. As a result, those with genuine housing needs could not access them, and the units were bought by speculators, leading to higher prices.
Currently, a series of preferential credit policies and strong directions from the Government, the SBV, and relevant ministries and sectors are creating a new trend, stimulating the demand for investing in and developing social housing projects among enterprises. With more social housing projects that meet the actual demands of borrowers, the credit packages will also be better absorbed.
Ms. Phung Thi Binh, Deputy General Director of Agribank:
A large amount of capital awaits borrowers.
Agribank has allocated a substantial amount of capital for the program to build one million social housing units. The bank is eagerly awaiting the development of more social housing projects in Hanoi, Ho Chi Minh City, and other localities. Notably, the interest rates for both investors and homebuyers in this segment are very favorable, with a reduction of up to 3% – equivalent to the deposit interest rate.
Agribank’s branches in Ho Chi Minh City have ample capital sources ready to serve lending activities, and there is a significant demand to channel this capital into the market.
Dr. Nguyen Tri Hieu, Economist:
The lending interest rate remains high and unstable.
The interest rate for the program to provide loans to people under 35 years old to buy social housing is still high and unstable. The announced rate is 6.1% per annum until June 30, 2025, after which it will be adjusted and is likely to fluctuate around this level. While this interest rate is lower than commercial rates, it is still high for the majority of low-income earners.
For the social housing program to succeed, the Government should provide capital to commercial banks at a very low interest rate, not exceeding 3% per annum, so that the banks can lend to homebuyers at around 5% per annum. Then, borrowers can purchase a house worth VND 1.2 billion, borrow VND 1 billion, and repay the principal and interest at approximately VND 7 million per month, which is reasonable considering the current average income levels.
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