A social housing complex in Bac Giang city. Vingroup and Techcombank have proposed a new preferential financing package for social housing. — VNA/VNS photo
HANOI — Vingroup and Techcombank have proposed a new preferential financing package for social housing.
The package offers a fixed interest rate of 4.8 percent per year for the first five years, a loan term of up to 30 years and financing of up to 100 percent of the purchase price. These terms are more favorable than the current VND120 trillion ($4.72 billion) package.
The news was announced by the Ministry of Construction.
To implement the preferential loan program, Vingroup and Techcombank have requested the State Bank of Vietnam (SBV) to increase their loan increase ceilings, allowing financial institutions to expand their lending operations and thus compensate for the low interest rates offered to public housing buyers.
The financial support required for these interest rate subsidies is estimated to be around VND8 trillion.
In response, the Ministry of Construction, in consultation with SBV, Vingroup and Techcombank, recently submitted a report to the Prime Minister on the new financing package, which has similarities to the current VND120 trillion financing package but offers better interest rates, loan terms and amounts.
Currently, the VND120 trillion package has a preferential interest rate of 7.5 percent per year for home buyers and 8 percent per year for project developers, with the preferential interest rates applied for five years. The SBV will adjust these interest rates every six months based on the average interest rates of the four state-owned commercial banks.
Commercial banks lent just 1 percent of the existing package in the first two quarters of 2024. The ministry recommended that the prime minister instruct the SBV to encourage more banks to participate in the preferential lending package and consider extending loan tenors and lowering interest rates by 3-5 percent to make home ownership easier for low-income earners. — VNS