Realize the dream of "settling down" with social housing loans

Housing for officials and workers

The social housing loan program under Decree No. 100/2015/ND-CP, dated October 20, 2015 of the Government on the development and management of social housing (Decree 100) through the Bank for Social Policies (BSP) has been implemented by Tuyen Quang province since 2019. Mr. Vu The Anh, Deputy Director of the BSP Provincial Branch, said: The whole province currently has 218 households accessing the social housing loan program with a total outstanding debt of nearly 80.8 billion VND. The subjects eligible for loans include people with revolutionary contributions; low-income people, poor and near-poor households in urban areas; workers working in enterprises inside and outside industrial parks; officers, non-commissioned officers, technical experts, professional soldiers, workers in agencies and units of the People's Army and the People's Public Security; cadres, civil servants and public employees eligible for preferential loans to buy social housing; build new or renovate, repair house to live in...

In March 2021, the spacious and solid 2-storey house was completed and put into use, bringing excitement to the whole family of Mr. Nguyen The Vuong, Bac Trung residential group, Son Duong town (Son Duong). Mr. Vuong shared: “For more than 7 years, the family of 6 people has lived in a cramped old house. For many years, they wanted to rebuild a decent house, but their low salary and many living expenses made it impossible for their family to build a house. When the province implemented the social housing loan program of the Vietnam Bank for Social Policies under Decree 100, his family was supported to borrow 300 million VND for a 15-year loan term to build a new house. Since having a new house, the children have had their own space to study and play, and all family activities are also more convenient. With a stable place to live, the couple can also work with peace of mind.”

Mr. Nguyen The Vuong, Bac Trung residential group, Son Duong town (Son Duong) borrowed capital from the Social Policy Bank according to Decree 100 to build a new house.

Like Mr. Vuong's family, Mr. Mac Anh Tuan's family, Tay ethnic group, Lang Lac village, Xuan Quang commune (Chiem Hoa) thanks to the capital of 500 million VND from the social housing loan program under Decree 100, has built a spacious house to live and work, no longer having to live in anxiety and fear like before.

Mr. Tuan said: “My family of 4 used to live in a 50m2 level 4 house that was in disrepair. I wanted to have a better place for my family but I was helpless because my salary as a cadre was only enough to cover my living expenses and my children's education.” When I learned that the Social Policy Bank was implementing a social housing loan program that would last for 20 years, Mr. Tuan discussed with his family about borrowing more money to rebuild the house. Currently, he pays 4.5 million VND in interest to the Social Policy Bank each month. This amount is suitable for my family's conditions, and the long loan period helps reduce pressure and avoid being too financially “burdened.”

Deploy to the right audience

For policy capital to be effective, lending to the right subjects is a prerequisite. Mr. Vu The Anh, Deputy Director of the Provincial Branch of the Vietnam Bank for Social Policies, said: “The unit is implementing 23 policy credit programs with a total outstanding debt of over VND 4,291 billion, of which the social housing loan program under Decree 100 is one of the programs with high outstanding debt. This is a major policy with humane significance. Subjects are eligible to borrow capital to buy, hire-purchase social housing; build or renovate, repair houses with a maximum loan of VND 500 million and the bank lends up to 80% of the value of the contract to buy, hire-purchase social housing. The maximum loan term is not more than 25 years from the date of disbursement of the first loan. The outstanding advantage of the program is the low interest rate, only 4.8%/year (0.4%/month)”.

Mr. Mac Anh Tuan's family, Lang Lac village, Xuan Quang commune (Chiem Hoa) borrowed 500 million VND from the social housing loan program under Decree 100.

Because of the humane support, the provincial branch of the Bank for Social Policies has tightened the appraisal process to reach the right beneficiaries, promoting the State's priority policies. The Bank has coordinated with local political and social organizations to strengthen propaganda and disseminate guidance documents to trade unions of departments, branches and localities so that officials and people can promptly grasp and have the opportunity to access capital sources.

In addition, based on the list of registered subjects, associations and unions review, and government approval, bank officers will appraise and guide the completion of loan applications. Lending is also carried out strictly on the principles of democracy, publicity, and transparency to ensure that capital reaches the right subjects, for the right purposes, and fairly.

In the coming time, the VBSP will proactively coordinate with local authorities, departments, and units to effectively carry out statistical work, review, and supplement beneficiaries eligible for access to loans in order to promptly disburse capital according to regulations. At the same time, promptly remove difficulties and provide maximum support to people in need of loans; continue to deploy and increase loan capital sources, meet urgent housing needs for low-income people, and ensure social security...

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