INTEREST RATE FOR HOUSING ASSISTANCE’S LOANS IS 6% PER ANNUM
On May 15, 2013, the State Bank of Vietnam issues the Circular No. 11/2013/TT-NHNN guiding some provisions on housing assistance’s loans in accordance with the Resolution No. 02/NQ-CP dated January 07, 2013 of the Government.
At this Circular, the State Bank of Vietnam requires that The State-owned commercial banks, the join stock commercial banks (Vietnam Agriculture and Rural Development Bank; Joint Stock Commercial Bank for Investment and Development of Vietnam; Joint Stock Commercial Bank for Industry and Trade of Vietnam; Joint Stock Commercial Bank for Foreign Trade of Vietnam; Joint Stock Commercial Bank for Housing Development in Cuu Long River Delta) of which the State holds more than 50% of charter capital shall use a quantity of fund at least 3% of total loan debt balance at the end time of last year for provision of loans to subjects conducting the purchase, hiring, purchase-hiring of social houses and the hiring, purchase of commercial houses with areas of less than 70m2, at sale price of less than 15,000,000 VND/m2 specified in the Circular No. 07/2013/TT-BXD, dated May 15, 2013 of the Ministry of Construction guiding on the determination of subjects entitled to borrow loans for housing assistance according to the Government’s Resolution No. 02/NQ-CP dated January 07, 2013 and documents revising, replacing the Circular No. 07/2013/TT-BXD.
This Circular also regulates that the interest rate applied in 2013 is 6%/ year. Periodically, in December every year, the State Bank of Vietnam shall determine and announce the interest rate applied for the next year, which is equal to 50% of average loaning interest rate of banks in the market but does not exceed 6%/ year. Duration to apply the loaning interest rate as stated in this Article shall not exceed 10 years for clients purchasing, hiring, purchase-hiring social house and hiring, purchasing commercial house and 5 years for clients being enterprises, but not pass June 01, 2023.
Apart from conditions for loans as prescribed by current law on loans of credit institutions to clients, provisions in the Circular No. 07/2013/TT-BXD, clients must meet conditions such as having contracts of purchase, hiring, purchase-hiring of social houses; contracts of hiring, purchase of commercial houses with investors; having purpose of borrowing loans for paying amounts not yet paid from purchase, hiring, purchase-hiring of social houses; having request for borrowing loans for purchase, hiring, purchase-hiring of social houses; having full minimum capital to participate in the loan plan.
This Circular takes effect on June 01, 2013.
