Conditions and preferential policies for loans to buy social housing in 2025

Social housing always receives a lot of attention from the people.

Cases supported with loans to buy social housing

Pursuant to Clause 5, Article 77 of the 2023 Housing Law, it is stipulated that: Support for preferential loans from the State through the Social Policy Bank, credit institutions designated by the State for subjects specified in Clauses 1, 2, 3, 4, 5, 6, 7 and 8, Article 76 of this Law to buy, rent-purchase social housing or self-construction or renovation or repair of housing; for subjects specified in Clause 7, Article 76 of this Law, preferential loans will be provided to buy and rent-purchase housing for the People's Armed Forces.

Thus, the subjects supported with loans to buy social housing include:

(1) People with revolutionary contributions, relatives of martyrs who are eligible for housing improvement support according to the provisions of the Ordinance on Incentives for People with Revolutionary contributions.

(2) Poor and near-poor households in rural areas.

(3) Poor and near-poor households in rural areas in areas frequently affected by natural disasters and climate change.

(4) Poor and near-poor households in urban areas.

(5) Low-income people in urban areas.

(6) Workers and laborers working at enterprises, cooperatives, and cooperative unions inside and outside industrial parks.

(7) Officers, professional soldiers, non-commissioned officers of the People's Armed Forces, police workers, civil servants, workers and defense officials serving in the army; people working in secret services, people working in other secret services in secret organizations receiving salaries from the state budget they are working for.

(8) Cadres, civil servants and public employees according to the provisions of law on cadres, civil servants and public employees.

According to the above regulations, there are 8 subjects supported with loans to buy social housing

Loan conditions

Pursuant to Clause 1, Article 48 of Decree 100/2024/ND-CP, the subjects (1), (5), (6), (7), (8) to be eligible for preferential loans to buy and rent social housing must meet the following conditions:

- Have an income source and the ability to repay debts as committed to the Social Policy Bank.

- Having a loan application for buying or leasing social housing.

- Having a contract to buy or rent social housing with the investor.

- Ensure loans in assets formed from loans according to regulations. The Social Policy Bank, investors and borrowers must clearly stipulate the management and handling methods of collateral assets in the 3-party Contract.

Preferential policies to support loans to buy social housing

(1) capital borrowed to buy social housing

According to Clause 3, Article 48 of Decree 100/2024/ND-CP, the loan amount for purchasing social housing at the Social Policy Bank as follows is at most 80% of the value of the home purchase or lease-purchase Contract.

(2) Interest rates and lending terms

According to Clause 4 and Clause 5, Article 48 of Decree 100/2024/ND-CP and Official Letter 4524/NHCS-TDSV, it is stipulated that:

- Loan interest rate: equal to the lending interest rate for poor households as prescribed by the Prime Minister in each period. Currently, according to Official Letter 4524/NHCS-TDSV, the lending interest rate is 6.6%/year. When there is a change in lending interest rates, the lending bank is responsible for sending a Notice to customers.

- Expiry interest rate: Estimated at 130% lending interest rate.

(3) Loan term, debt repayment period

Clause 4, Clause 5, Article 48 of Decree 100/2024/ND-CP stipulates:

- Loan term: By the parties agreeing appropriately according to the customer's ability to repay the debt. However, the maximum period cannot exceed 25 years from the date of disbursement of the first loan.

- sets the principal repayment period: Maximum 6 months/time from the date of receipt of the first loan.

Note: Subjects (2), (3) who buy or rent social housing are also entitled to preferential loans according to the provisions of Clause 1, Clause 3, Clause 4 and Clause 5, Article 48 of Decree 100/2024/ND-CP.