Commercial banks apply an interest rate of five percent on subsidized loans for home purchasers in early 2018

By Han Tin - Jan 03, 2018 | 05:43 AM GMT+7

TheLEADERThe interest rate of 5 per cent p.a. is applicable by commercial banks in 2018 on subsidized loans outstanding for home purchasers from January 01, 2018, a move aimed at enabling favorable policies to connect lenders and borrowers in housing sector.

Commercial banks apply an interest rate of five percent on subsidized loans for home purchasers in early 2018
New interest rate is applied to home loans from January 01, 2018.

The State Bank of Vietnam (SBV) issued Decision No. 2735/QĐ-NHNN dated December 29 on the interest rate applicable to commercial banks in 2018 for the subsidized loans outstanding for home purchasers.

Accordingly, the SBV has set the interest rate of 5 per cent p.a. applicable to commercial banks in 2015 for the subsidized loans outstanding for home purchasers.

This Decision takes effect on January 01, 2018 and replaces the Decision No. 2544/QD-NHNN dated December 30, 2016 of the SBV’s Governor on the interest rate applicable to commercial banks in 2017 for the subsidized loans outstanding for home purchasers as regulated.

Recently, HCMC Real Estate Association (HoREA) has proposed that Vietnam Bank for Social Policies should allocate about VND1 trillion (US$44 million) out of VND2 trillion (US$88 million) approved by the National Assembly Standing Committee to support the housing policy from the middle of 2017.

In addition, HoREA also proposed that the National Assembly, the Government and the State Bank allocate an annual budget from VND1 trillion to 2 trillion in the period from 2018-2020 for Entities eligible for incentive policies on social housing at an interest rate of about 4.8 per cent p.a.