State Bank offers low interest rate for housing

The State Bank of Vietnam on March 13 announced an ease in loan interest rates upto six percent per annum for prospective future house buyers.

Phu My residential area in District 7 in HCMC (Photo: SGGP)

Civil servants, low income groups and investors of social housing projects will enjoy a six percent interest rate, applicable for first three years of a five to ten year loan term.

The loan duration period must be at least a maximum of ten years for individuals and five years for businesses.

After April 15, 2016--deadline for the first three year period-- customers will continue to enjoy another preferential interest rate being offered by the State Bank.

Civil servants and low income groups will receive at least 80 percent of the total amount for housing in the form of a loan. The maximum loan amount for businesses will be 70 percent.

Commercial banks must use at least three percent of their total outstanding loans, calculated by the end of the previous year. State Bank will however sponsor VND30 trillion (US$1.433 billion) for the above purpose.

By Binh Minh – Translated by Hai Mien

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