The State Bank of Viet Nam (SBV) has decided to keep preferential loan interest rate unchanged at 5 per cent for purchase, rent or hire of social housing projects in 2018.

The decision took effect from the beginning of this year, replacing Decision No 2544/QD-NHNN, dated December 30, 2016, on interest rate for loans applicable in 2017 for social housing projects.

The interest rates will be applied for house buyers who have already sought loans from the VND30 trillion (US$1.32 billion) housing stimulus package launched in 2013 as the minimum repayment term is 15 years, and from the Viet Nam Bank for Social Policies (VBSP).

The VND30 trillion (US$1.32 billion) housing stimulus package aimed primarily at social policy beneficiaries and estate developers of such projects. Of which, VND21 trillion, accounting for 70 per cent of the package’s total has been given to home buyers of projects. The remaining 30 per cent has been provided to social housing projects’ investors.

Following three years of implementation, the housing stimulus package ended in 2016-end.

In the middle of last year, the National Assembly Standing Committee submitted a proposal to add VND2 trillion to the Viet Nam Bank for Social Policies (VBSP) for middle-term public investment in the 2016-20 period. A part of the capital would be used for social housing projects.

Some VND1.2 trillion of the investment has been disbursed, so far. However, both social housing project developers and low-income earners have found it hard to access the preferential credit.

Deputy Minister of Construction Le Quang Hung said the ministry proposed to the VBSP to quickly implement the lending this year. — VNS