In 2017 There Will Be Two New Loans For The Poor To Buy Homes

Mr.Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association, said that the Housing Law of 2014 and Decree 100/2015 / ND-CP on development and management of social housing of  the Government has stipulated two sources of capital for development of social security and affordable commercial housing which is financed by commercial banks and funds from the Social Policy Bank.

Accordingly, state-owned commercial banks have to spend 3% of their outstanding loans to buy social housing at preferential conditions. The second loan source is assigned to Vietnam Bank for Social Policies. Accordingly, the bank will use 50% of the budget and 50% of the mobilized capital to provide loans for the purchase of the social house at the maximum interest rate of 5%.

Housing loan package for the poor

In 2017, there will be two new loans for the poor to buy homes

There will be two packages of unlimited size, low interest for buyers of social housing and affordable commercial housing instead of the package of VND 30 trillion. People who want to buy social security can be assured.

Although there are mechanisms and policies, to put these policies into practice there is a certain “lag”. To this point, funding for social housing remains “on paper” for three reasons. Firstly, the regulation that commercial banks must create a social loan fund is unworkable. In reality, commercial banks are facing many difficulties, so it is unrealistic to reserve preferential loans for buying subsidized housing.

Secondly, the Bank for Social Policy is not only focusing on housing loans for low-income people but also has many other programs such as agriculture, marine economic development, vocational guidance, student support … so the capital is sparsely distributed, lack of concentration. On the other hand, the related ministries and agencies such as the Ministry of Planning and Investment, Ministry of Finance have not unified.

On behalf of the Association of Real Estate, to support enterprises to build social security, five months ago the Association has petitioned to the Prime Minister, the Governor of the State Bank, the Minister of Construction, proposed to implement specific laws to provide funding for social housing. Recently, the Association sent a similar dispatch to the National Assembly Standing Committee and Economic Committee.

Mr. Nam affirmed the ability that 2017 will have the cash flow for this segment. In the near future, the Association also aims to launch a pilot Real Estate Investment Fund to have an independent capital mobilization channel for the real estate market, regardless of its source of capital, which has the capital for the poor.

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