The Dong Mo-Dai Kim social housing project in Hoang Mai district, Hanoi (Photo: VNA)

Hanoi (VNA) - The State Bank of Vietnam (SBV) has decided to keep preferential loan interest rate unchanged at 5 percent 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/QĐ-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 30 trillion VND (1.32 billion USD) housing stimulus package launched in 2013 as the minimum repayment term is 15 years, and from the Vietnam Bank for Social Policies (VBSP).

The 30 trillion VND housing stimulus package aimed primarily at social policy beneficiaries and estate developers of such projects. Of which, 21 trillion VND, accounting for 70 percent of the package’s total has been given to home buyers of projects. The remaining 30 percent has been provided to social housing projects’ investors.

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

In the middle of last year, the National Assembly Standing Committee submitted a proposal to add 2 trillion VND to the Vietnam 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 1.2 trillion VND 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.-VNA