Unblocking capital sources to support social housing purchases

After one year of implementing the VND120,000 billion credit package for investors and homebuyers of social housing projects (NƠXH) under Resolution No. 33/NQ-CP of the Government, the State Bank - Thanh Hoa Province Branch (SBV Thanh Hoa) has actively implemented, directed commercial banks to approach, grasp the demand for loans and guide investors and homebuyers to complete loan documents and procedures according to regulations. However, up to this point, only one project in the province has received loans under this program.

Unblocking capital sources to support social housing purchases The social housing project in Quang Thang ward - Tan Thanh ECO3 residential area received a loan of 120,000 billion VND from the Investment and Development Bank, Lam Son branch.

To remove obstacles and promote the safe, healthy and sustainable development of the real estate market, on March 11, 2023, the Government issued Resolution No. 33/NQ-CP assigning the State Bank of Vietnam to deploy a credit package of VND 120,000 billion for investors and home buyers of social housing projects, worker housing projects, projects to renovate and rebuild old apartments to borrow at preferential interest rates. Accordingly, the borrowers are legal entities and individuals investing in projects and buying houses in social housing projects, worker housing projects, projects to renovate and rebuild old apartments in the list of projects announced by the Ministry of Construction according to regulations. To be eligible for a loan, customers must meet the loan conditions according to regulations. Each home buyer is only allowed to participate in a loan once to buy 1 apartment in a project in the list of projects announced by the Ministry of Construction according to regulations.

In Thanh Hoa, branches of state-owned commercial banks participating in the program include: Bank for Investment and Development of Vietnam, Bank for Agriculture and Rural Development, Industrial and Commercial Bank, Foreign Trade Bank. The disbursement period of the program is until the disbursement turnover reaches 120,000 billion VND but not later than December 31, 2030. The preferential period for investors applying the loan interest rate is 3 years from the date of disbursement but not exceeding the loan term in the initial loan agreement; for home buyers applying the loan interest rate during the preferential period is 5 years from the date of disbursement but not exceeding the loan term in the initial loan agreement. During the preferential period, the interest rate is 1.5 to 2% lower than the average medium and long-term VND interest rate of state-owned commercial banks.

Unblocking capital sources to support social housing purchases Agribank Nam Thanh Hoa is implementing a VND120,000 billion loan package for investors and home buyers of social housing projects under Resolution No. 33/NQ-CP of the Government.

Based on Resolution No. 33/NQ-CP and the direction of the State Bank of Vietnam, the State Bank of Thanh Hoa has issued official dispatches requesting banks participating in the program in the province to thoroughly grasp and implement Resolution No. 33/NQ-CP to their staff and employees, creating a unified awareness in implementing the program. At the same time, proactively arrange capital sources, prepare necessary conditions to implement the program; promote the bank-enterprise connection program to support businesses in accessing credit capital...

To effectively implement the VND 120,000 billion credit package for investors and homebuyers of social housing projects according to Resolution No. 33/NQ-CP of the Government, the State Bank of Thanh Hoa is focusing on directing banks and credit institutions in the area to mobilize capital sources, proactively reviewing and removing difficulties for real estate businesses and homebuyers to quickly access preferential credit sources; monitoring the lending of commercial banks participating in the program; promptly reporting to the State Bank of Vietnam any arising problems. In addition, the State Bank of Thanh Hoa continues to closely coordinate with the Department of Construction to grasp the social housing projects in the area approved by the Provincial People's Committee to direct commercial banks to access and lend according to regulations...

Article and photos: Luong Khanh

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