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Interest rate for social housing loans to be raised to 5% in 2023

The interest rate for social housing loans will be lifted to 5% per annum from the current 4.8% per annum from the beginning of next year, following a decision by the State Bank of Vietnam.

The new interest rate will be applied for loans used for purchasing, and leasing social housing projects and commercial ones with an area of under 70 square metres and 15 million VND (634 USD) per square metre.

Groups eligible for the loans are civil servants, public employees, military officers and low-in-come workers who are struggling to buy houses at commerical housing projects or houses at urban areas approved by the authorities with the total value of purchase and sale contracts (including houses and land) not exceeding 1.05 billion VND.

Households and individuals that have plans to renovate or build new social houses in accordance with the provisions of law for lease, lease purchase and sale to workers and employees in industrial parks, small and medium industrial clusters, export processing zones, economic zones, high-tech zones, industrial and handicraft production establishments and factories will be able to get access to the loans./.