Credit program of VND 120.000 billion promoted

VND120,000 billion credit program for social housing loans, workers’ housing, renovation and rebuilding of old apartments.

In order to facilitate promptly full grasp and clear information for people and businesses in the province so that they can access the program with high efficiency; as well as actively contribute to resolving and boosting the real estate market to develop safely, healthily, and sustainably under the direction of the Government, the SBV - Bac Ninh Provincial Branch provides some information related to this program.

Accordingly, borrowers (hereinafter referred to as customers) are legal entities and individuals investing in projects and buying houses of social housing, workers’ housing, renovation and reconstruction projects of old apartments which is on the list of projects announced by the Ministry of Construction under the regulation, including: customers are project investors (hereinafter referred to as investors); customers are home buyers in the project (hereinafter referred to as home buyers).

Commercial Banks (CMs) lend customers money in order to implement the Program by using the banks’ self-mobilized capital resources. CMs are responsible for reviewing, appraising and deciding on loans given to customers under the loan laws and their own loan decisions. CMs carry out debt classification, provisioning and risk management for loans provided under this Program in accordance with the legal regulations.

Customers must fulfill the conditions to enjoy the policies on supporting social housing, workers’ housing, renovation and reconstruction of old apartment according to the provisions of law and guiding documents of the Ministry of Construction; as well as the conditions applicable to loans law. In particular, each home buyer is only allowed to loan under the provisions of this Program once to buy 01 apartment on the Project List announced by the Ministry of Construction following the regulations; Each investor's project can only participate in raising capital according to the provisions of this Program once.

The period applied for preferential loan interest rate investors is 03 years and for home buyers is 05 years from the date of disbursement but must not exceed the loan term of the original loan agreement. 

Loan interest rate applied until June 30, 2023: for investors is 8.7%/year; for home buyers is 8.2%/year.

Loan interest rates are applied for the period from July 1, 2023 to December 31, 2023 as follows: For project investors: 8.2%/year; for home buyers in the project: 7.7%/year (document No. 5831/NHNN-CSTT dated July 21, 2023 of the State Bank of Vietnam).

Loan interest rates are applied for the period from January 1, 2024 to June 30, 2024 as follows: For project investors: 8%/year; for home buyers in the project: 7.5%/year (document No. 9844/NHNN-CSTT dated December 25, 2023 of the State Bank of Vietnam).

The disbursement period of the Program is until disbursement revenue reaching 120,000 billion VND but not later than December 31, 2030.

CMs in the province participating in the Program include: Bank for Agriculture and Rural Development - Bac Ninh Branch; Bank for Agriculture and Rural Development - Bac Ninh II Branch; Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch; Joint Stock Commercial Bank for Industry and Trade - Tien Son Branch; Joint Stock Commercial Bank for Industry and Trade - Que Vo Industrial Park Branch; Joint Stock Commercial Bank for Industry and Trade - Tien Son Industrial Park Branch; Joint Stock Commercial Bank for Investment and Development - Bac Ninh Branch; Joint Stock Commercial Bank for Investment and Development - Kinh Bac Branch; Joint Stock Commercial Bank for Investment and Development - Tu Son Branch; Joint Stock Commercial Bank for Foreign Trade - Bac Ninh Branch; Joint Stock Commercial Bank for Foreign Trade - Kinh Bac Branch; Joint Stock Commercial Bank for Foreign Trade - South Bac Ninh Branch; Tien Phong Commercial Joint Stock Bank - Bac Ninh Branch.