Adjusting interest rates for social housing loans: Ensuring balance of many factors

Consider from many angles

Decree No. 100/2024/ND-CP, effective from August 1, 2024, detailing a number of articles of the Housing Law on social housing development and management, has brought a series of significant changes. Pay attention to social housing lending. One of the notable changes is that the lending interest rate is adjusted according to the lending interest rate for poor households prescribed by the Prime Minister from time to time. The overdue debt interest rate is also set at 130% compared to the normal loan interest rate. This means that, with the current lending interest rate for poor households being 6.6%/year, the lending interest rate for social housing at VBSP has increased by 1.8% compared to before.

According to Deputy General Director of VBSP Huynh Van Thuan, this loan interest rate has been summarized, evaluated and carefully calculated by the competent authority during the process of developing the Government's Decree; The draft Decree has been widely consulted by ministries, branches, localities and people to complete and evaluate before submitting to the Government for promulgation according to regulations.

Evaluating the new adjustments, Mr. Nguyen Quoc Hung, General Secretary of the Vietnam Banks Association, commented that the approval of the interest rate of 6.6%/year has been carefully considered, to ensure balance. many factors. He believes that this policy needs to be viewed from a stable and long-term perspective, with a loan term of up to 25 years.

According to the report of the Bank for Social Policy as of July 31, 2024, after nearly 10 years of implementing social housing loans according to the 2014 Housing Law, Decree No. 100/2015/ND-CP, Decree No. 49/2021/ND-CP, VBSP has disbursed 20,894 billion VND to more than 49,000 customers, outstanding loans reached 17,263 billion VND with nearly 46,000 customers still having outstanding loans. Policy credit capital on social housing has contributed to helping more than 49,000 low-income people, workers and their families have social housing and contributed to building more than 49,000 houses, stabilizing "settle down, have a happy career", and feel secure in working. production and economic development.

Consider making practical adjustments

Carefully calculated to maintain the sustainability of the program and reduce the burden on the State budget, some experts also emphasize the need for a stable long-term policy.

Dr. Nguyen Tri Hieu, Economic Expert, evaluated the interest rate of 6.6%/year as relatively attractive, and emphasized the need to fix this interest rate for many years to create stability for borrowers. Mr. Hieu gave the example of home loan interest rates in the US, where interest rates can be up to 7.5%/year but are fixed for 30 years, helping borrowers to make long-term financial plans without Don't worry about interest rate fluctuations.

Faced with multidimensional opinions related to the adjustment of interest rates for social housing loans according to Decree No. 100/2024/ND-CP, Deputy General Director of Social Policy Bank Huynh Van Thuan affirmed that as the implementing unit for loan, VBSP will receive comments to report to relevant Ministries and branches, thereby submitting the report to the Government and Prime Minister for consideration and decision. Bank for Social Policy also commits to continue focusing on implementing the social housing loan program to ensure compliance with the Government's regulations in Decree No. 100/2024/ND-CP, including regulations on loan interest rates. .

Nearly 6.8 million households exceeded the poverty line

VBSP is a type of policy bank, operating for non-profit purposes. VBSP was established and operates according to the provisions of Decree No. 78/2002/ND-CP dated October 4, 2002 of the Government, Decision No. 131/2002/QD-TTg dated October 4, 2002, Decision No. 16 /2003/QD-TTg dated January 22, 2003 of the Prime Minister. In particular, the activities of VBSP are to lend to poor households and other policy beneficiaries according to the regulations of the Government and the Prime Minister. VBSP provides loans according to the regulations of the Government and the Prime Minister on: Borrowers, loan conditions, loan amount, loan interest rate, loan term...

During more than 20 years of operation, VBSP has continuously perfected and successfully implemented the governance and management organization model and has received and safely and effectively managed credit capital sources, promptly deployed The Party and State's guidelines and policies on social policy credit contribute to the successful implementation of the National Target Programs: Sustainable poverty reduction; building new rural areas; socio-economic development in ethnic minority and mountainous areas and ensuring social security.

By the end of July 31, 2024, the total capital of VBSP reached 373,010 billion VND, total outstanding debt reached 350,822 billion VND with nearly 6.9 million poor households, near-poor households and other policy beneficiaries with outstanding debt. Policy capital has supported nearly 6.8 million households to overcome the poverty line, creating jobs for more than 7.2 million workers (of which nearly 145 thousand workers go to work abroad for a limited time). , supported nearly 4 million pupils and students in difficult circumstances to get school loans, helped buy more than 90 thousand computers and online learning equipment for pupils and students, built nearly 20 million water works clean and sanitize the rural environment, build nearly 731 thousand houses for the poor and other policy beneficiaries, nearly 2 thousand businesses and employers affected by the Covid-19 epidemic borrowed capital to repay salary for stopping work, restoring production for more than 1.2 million workers.