Interest rate social housing loans in 2019 set at 5 percent per annum

Interest rate for social housing outstanding loans in 2019 was set at 5 per cent per annum as per the governmental requirement, according to a new decision of the State Bank of Vietnam

Interest rate social housing loans in 2019 set at 5 percent per annum

The rate maintained the same as last year. The decision takes effect on January 1, 2019 and replaces the bank governor’s decision No. 2735/2017 on interest rate for social housing finance in commercial banks in 2018.

According to the Government circular No. 11/2013, buyers of social houses or commercial houses with area under 70 square meters costing under $15 million ($646.2 ) per square meter will be eligible for the social housing finance package.

Individual customers who want to enjoy the prime rate must have purchase, lease or lease-purchase contracts.

The State Bank of Vietnam in Ho Chi Minh City said that by the end of 2018, credit institutions in the city mobilized VND2.2 million up by 12 percent against the same period last year. Total liability was VND2 million, a year-on-year increase of 16.3 percent.

Credit structure continued improving with 75 percent of credit running into production and trading. Apart from this, credit institutions disbursed VND260,000 billion in the bank-enterprise connection program in 2018.

Credit institutions’ bad debts were just 2.9 percent of total outstanding loans, proving that credit quality has still been the banking sector’s top priority in credit growth.