Contribute to improving the lives of policy beneficiaries and low-income workers

The social housing loan program under Decree No. 100/2015/ND-CP of the Government on the development and management of social housing through the Vietnam Bank for Social Policies (VBSP) in the province with preferential interest rates has been helping thousands of households of officials, civil servants, and low-income workers stabilize their housing, realize their dream of "settling down and having a career", and improve their lives.

Checking the situation of using policy capital to build social housing in Thieu Vu commune (Thieu Hoa)

After nearly 10 years of renting a house, at the end of 2024, the family of Ms. Nguyen Thi Hong, an employee of Co.opmart Thanh Hoa Supermarket, officially owned a social housing apartment in the apartment complex of Quang Thang Ward, Thanh Hoa City, to the excitement of the whole family. This apartment was purchased from the couple's savings and a preferential loan of 500 million VND from the Thanh Hoa Social Policy Bank. With a long loan term of up to 25 years, each month her family only has to pay the principal and interest of more than 4 million VND. Ms. Hong excitedly shared: "I am from Quang Xuong district, married a man from Tho Xuan, and my husband and I started a business in Thanh Hoa city. Since getting married, my husband and I have had to rent a house, living here today, living there tomorrow, which is very inconvenient for our children's living and studying. Many times we wanted to buy a decent house, but our low salary and many living expenses made it impossible for our family. With a loan from the social housing loan program of the Vietnam Bank for Social Policies, my family has a new, spacious apartment. Since we have a new house, our children have their own space to study and play, and all activities in the family are more convenient. With a stable place to live, my husband and I can also feel secure in doing business and working."

Like Ms. Hong's family, Nguyen Van Tung's family in Hoang Long apartment building (Thanh Hoa city) said: "We want to have a better place to live for our family but are "powerless" because there are only two mothers and children in the house, the husband is a worker, the salary is low, just enough to cover living expenses. When I learned that the Social Policy Bank was implementing a social housing loan program, lasting up to 20 years, I discussed with my mother to borrow more money to buy a house to stabilize our lives. Currently, with a loan of 350 million VND, each month I pay both principal and interest of more than 3 million VND, I still pay regularly. Because the loan period is long, it also reduces the financial pressure on my family."

The social housing loan program under Decree No. 100/2015/ND-CP of the Government has been closely coordinated by Thanh Hoa Social Policy Bank with local authorities, functional agencies, and project investors in disseminating, reviewing, and understanding loan needs. Simplifying the process and procedures for reviewing documents and disbursing capital to the right subjects, promptly and effectively. By the end of March 2025, the whole province had nearly 2,000 customers borrowing capital with an outstanding debt of nearly 690 billion VND.

According to Decree No. 100/2015/ND-CP of the Government, people are allowed to borrow capital from policy bank credit sources to buy social housing; build new houses or renovate and repair houses for living. Eligible borrowers include: low-income workers, poor and near-poor households in urban areas; people with revolutionary contributions; workers; cadres, civil servants, public employees, and armed forces who do not have a house or whose house is cramped, not large enough, and not subject to personal income tax. The Social Policy Bank lends up to 80% of the value of the contract to buy or lease-purchase social housing; the maximum loan term is not more than 25 years from the date of disbursement of the first loan. Through review, in 2025, the total demand for loans for the social housing program in the province is more than 400 billion VND. Thanh Hoa Social Policy Bank has consulted and received additional capital allocation from the Central Government to implement the program.

Mr. Nguyen Ngoc Thanh, Deputy Director of Thanh Hoa Social Policy Bank, said: "The social housing loan program is a major policy with humane significance, contributing significantly to improving the lives of policy beneficiaries, workers in industrial parks and many people. To effectively implement the program, Thanh Hoa Social Policy Bank continues to coordinate with Party committees, authorities and mass organizations in the province to strengthen the Party's leadership over social policy credit. At the same time, it is necessary to carry out well the work of statistics, review and supplement beneficiaries in need, to access loans to promptly disburse capital according to regulations, striving to reduce 50% of the time to process documents to quickly and promptly disburse capital".

Currently, the demand for preferential loans to buy social housing in Thanh Hoa province is very large. In order for low-income households to realize their dream of "settling down and having a career", stabilizing their lives, in addition to the capital allocated from the Central Government, it is necessary to have additional counterpart capital from the province. In addition, it is also necessary to have close coordination between local authorities, functional agencies and the Vietnam Bank for Social Policies in disseminating, reviewing subjects, improving procedures and processes for reviewing and disbursing documents so that the program can be implemented quickly, promptly and with the highest efficiency.

Article and photos: Khanh Phuong