Conditions and capital levels for borrowing to buy social housing
According to Article 48 of Decree 100/2024/ND-CP, there are regulations on conditions as well as interest rates for loans to buy social housing currently at the Vietnam Bank for Social Policies as follows:
- Loan conditions: Subjects specified in Clause 1, Clause 4, Clause 5, Clause 6, Clause 7 and Clause 8, Article 76 of the 2023 Housing Law to be eligible for preferential loans to buy or lease-purchase social housing must meet the following conditions:
+ Having income and being able to repay debts as committed to the Vietnam Bank for Social Policies;
+ Having a Loan Application for the purchase or lease-purchase of social housing;
+ Having a contract to purchase and lease social housing with the investor in accordance with the provisions of this Decree and the law on housing;
+ Implement the guarantee of loan money with assets formed from loan capital in accordance with the law. The Vietnam Bank for Social Policies, investors and borrowers must clearly stipulate the management and handling methods of collateral in the Tripartite Contract.
- Borrowed capital level:
+ In case of buying or renting out social housing, the maximum loan capital level is equal to 80% of the value of the Housing Purchase and Lease-purchase Contract.
+ In case of new construction or renovation, repair of houses, the maximum loan capital level is equal to 70% of the estimated value or capital use plan, maximum not exceeding 1 billion VND, based on the construction investment capital rate, housing construction unit price of the competent authority and not exceeding 70% of the loan collateral value.
- Loan term: The loan term is agreed upon by the bank and the customer in accordance with the customer's ability to repay the debt and not exceeding 25 years from the date of disbursement of the first loan.
Interest rates for people who have borrowed capital to buy social housing
Based on the provisions of Clause 4, Article 48 of Decree 100/2024/ND-CP amended by Clause 4, Article 1 of Decree 261/2025/ND-CP on preferential loans to buy social housing as follows:
Article 48. Borrowing preferential capital to buy or lease social housing; building or renovating or repairing houses at the Vietnam Bank for Social Policies
4. Lending interest rate equal to 5.4%/year. Overdue debt interest rate equal to 130% of lending interest rate. In case it is necessary to change the lending interest rate, assign the Vietnam Bank for Social Policies to preside over and coordinate with the Ministry of Construction and relevant agencies to submit to the Prime Minister for consideration and decision.
Cases eligible for loan support to buy social housing currently
Based on Clause 1 and Clause 6, Article 48 of Decree 100/2024/ND-CP, the following subjects will be eligible for loan support to buy social housing if they meet the conditions mentioned in the above section, specifically:
(1) People with meritorious services to the revolution, relatives of martyrs who are eligible for housing improvement support according to the provisions of the Ordinance on Preferential Treatment for People with Meritorious Services to the Revolution.
(2) Poor and near-poor households in urban areas.
(3) Low-income people in urban areas.
(4) Workers and employees working at enterprises, cooperatives, and cooperative unions inside and outside industrial parks.
(5) Officers, professional soldiers, deputy officers of the People's Armed Forces, police workers, civil servants, workers and national defense officials serving in the army; people working in cryptography, people working in other cryptography organizations receiving salaries from the state budget who are working.
(6) Cadres, civil servants, and public employees according to the provisions of law on cadres, civil servants, and public employees.
(7) Poor and near-poor households in rural areas are allowed to buy or rent-purchase social housing according to the provisions of Clause 1, Article 77 of the 2023 Housing Law.
(8) Poor and near-poor households in rural areas in areas frequently affected by natural disasters and climate change are allowed to buy or lease social housing according to the provisions of Clause 1, Article 77 of the 2023 Housing Law.
