LENDING IN ACCORDANCE TO DECISION NO.167/2008/QD-TTG DATED 12/12/2008 ON HOUSING SUPPORTS TO POOR HOUSEHOLDS.

Credit program on housing support to poor households following the Government Decision No.167/2008/QD-TTG dated 12th September 2008.

* Objectives:

- Implement in line with other policies of the National Target Program on Poverty Reduction in 2006-2010, the State directly support poor households with stable, safe accommodation which leads to living standards improvement, sustainable hunger eradication and poverty reduction.  

* Target clients:

Beneficiaries must satisfy 3 following conditions to get a housing loan:

- Being the poor (according to the poor standard promulgated in the Decision No. 17/2005/QD-TTg, dated on July 8^th 2005 of the Prime Minister on poor standard applyied in the period 2006-2010), having legal residence of the local Government and being in the list of the poor managed by the local People Commitee at the time this Decision takes effect.

- Households who do not have accommodation or have short-lived, dilapidated accommodation and this house is likely to collapse at any time. And they can not afford to improve their house.

- Households are not the beneficiaries to receive support on housing according to Decesion No. 134/2004/Q§-TTg, dated on July 20^th 2004 of the Prime Minister on policies supporting land for farming, residing, housing, and safe water for ethnic minorities households and the other housing assistant policies.

* Range of application:

Supporting policy on housing is applied to the poor households who satisfy the regualation in the Decision No. 167/2008/QD-TTg of Prime Minister, and live in the areas are not urban areas all over the country.

* Loan size and lending method:

+ Loan size is not exceed VND 8,000.000.  Interest rate is 3%/year. Loan duration is 10 years, in which grace period is 5 years. The borrowers begin to pay debt from the sixth year. The minimum rate of payment of each year is 20% of total loan.

+ Lending method:

VBSP apply the partial entrusted lending method through socio-political organizations.