The House Development Funding in Ho Chi Minh City yesterday said that the municipal People’s Committee decided to increase loan for low-income families from VND400 million (US$18,340) to VND500 million (US$ 22,984) to buy houses.
The maximum duration of the loan is 15 years and the decision takes effect in May 25. The decision is not effective for the cases who have borrowed loan before the issuance of the decision.
The present preferential interest for the house development loan for low-income families in HCMC is 4.7 percent a year.
As per a statistics of the city Department of Finance, after 10 year operation, the House Development Funding has disbursed more than VND610 billion (US$28 million) for 2,000 low-incomers.
One of the reasons few people asked for the loan is the limited loan of just VND400million; accordingly, the city authority decided to raise the loan to VND500 million to help people can buy their house of choice.