HoREA proposes to reduce interest rate for social housing loans to 3%/year

08/27/2024 07:33 Nhat Linh Print article

ANTD.VN - The Ho Chi Minh City Real Estate Association (HoREA) has just issued a document proposing solutions to increase the supply of social housing and credit incentives for investors, home buyers and renters.

In the proposal document, HoREA proposed to review the regulations on preferential loans for investors of social housing projects at the Bank for Social Policies.

According to the provisions of Decree No. 100/2024/ND-CP, for investment projects to build social housing for sale or for hire-purchase, the preferential loan interest rate at the Social Policy Bank is equal to 120% of the loan interest rate for borrowers at the Social Policy Bank to buy or hire-purchase social housing prescribed in each period.

Those who borrow capital from the Social Policy Bank to buy or rent-purchase social housing are entitled to "loan interest rates equal to the lending interest rates for poor households as prescribed by the Prime Minister from time to time."

According to the announcement of the Social Policy Bank, the current lending interest rate for the poor is 6.6%/year. Thus, the lending interest rate for investors of social housing projects for sale or lease-purchase is 7.92%/year (6.6%/year x 120% = 7.92%/year).

HoREA proposes to deeply reduce preferential interest rates for social housing development

HoREA said that this interest rate is only slightly lower than the current 8%/year loan interest rate of the 120,000 billion VND credit package and lower than the previous commercial credit interest rate but is still high.

The Association believes that the regulation on lending interest rates for "poor households according to the poverty line prescribed in each period" at the Social Policy Bank is 6.6%/year applied in 2024, which is "too high" compared to the current lending interest rate level at commercial banks.

Typically, Vietcombank is providing consumer loans with loan amounts of up to billions of VND with loan interest rates from 4.2-5%/year, without requiring collateral, only proof of debt repayment ability.

Therefore, HoREA believes that it is necessary to consider reducing the lending interest rate for "poor households according to the poverty standards prescribed in each period" at the Social Policy Bank to an appropriate interest rate of 3-4.8%/year.

Accordingly, the Association proposes that the Association consider allowing continued implementation of the regulation on the lending interest rate of 4.8%/year according to Decision No. 486/QD-TTg dated May 10, 2023 of the Prime Minister, and it is best to consider applying a lending interest rate of 3%/year for buyers and renters of social housing at the Bank for Social Policies.

At the same time, the Association proposed that the Prime Minister consider reducing the lending interest rate for "poor households according to the poverty line prescribed in each period" borrowing capital from the Social Policy Bank from 6.6%/year to 3-4.8%/year similar to the program "loan to support poor households with housing" with a lending interest rate of 3%/year at the Social Policy Bank.

According to HoREA, this proposal is to ensure consistency and unity of policies for poor households and those who buy or rent social housing to receive preferential loans with a lending interest rate of 3-4.8%/year, suitable to the current practical situation.

Source: https://www.anninhthudo.vn/horea-de-xuat-giam-lai-suat-cho-vay-mua-nha-o-xa-hoi-xuong-3nam-post587333.antd