Amongst moves to lower the lending interest rates, the SBV proposes to adjust the interest rate for borrowers for social housing loans from the VND120,000 billion credit package. As per the state bank’s proposal, the interest rate for borrowers should reduce to 6.5 percent per year.
Following four interest rate reductions, commercial banks are offering a 7 percent annual lending interest rate for investors in social housing projects and 6.5 percent for home buyers at these special projects. These rates, effective from July 1 to December 31, 2024, mark a 1 percent decrease from the first half of the year and nearly 2 percent decrease from the program's inception.
The credit package initially set at VND120,000 billion with the involvement of four state-owned commercial banks (Agribank, BIDV, Vietcombank, VietinBank) has now risen to VND140,000 billion following the engagement of four private joint-stock commercial banks (TPBank, VPBank, MB, Techcombank).
The program is funded entirely by deposits from commercial banks and lending follows all legal regulations. As of June 2024, commercial banks have loaned out VND1,344 billion, marking a 646.67 percent increase from the end of 2023.
