A social housing complex in Bắc Giang City. Vingroup and Techcombank have proposed a new preferential credit package for social housing. — VNA/VNS Photo

HÀ NỘI — Vingroup and Techcombank have proposed a new preferential credit package for social housing.

This package offers a fixed interest rate of 4.8 per cent per year for the first five years, a loan term of up to 30 years, and loans covering up to 100 per cent of the purchase price. These terms are more favorable compared to the current VNĐ120 trillion (US$4.72 billion) package.

The news was released by the Ministry of Construction.

To implement this preferential loan programme, Vingroup and Techcombank have requested that the State Bank of Việt Nam (SBV) increase the credit growth limit. This adjustment would allow financial institutions to expand their lending operations, thereby compensating for the lower interest rates offered to social housing buyers.

The estimated financial support needed for these interest rate subsidies is around VNĐ8 trillion.

In response, the Ministry of Construction has engaged with SBV, Vingroup and Techcombank and recently submitted a report to the Prime Minister. The new loan package shares similarities with the current VNĐ120 trillion credit package, but offers better interest rates, loan terms and amounts.

Currently, the VNĐ120 trillion package has an interest rate of 7.5 per cent per year for homebuyers and 8 per cent per year for project developers, with preferential rates applicable for five years. SBV adjusts these rates every six months based on the average interest rates of the four state-owned commercial banks.

In the first two quarters of 2024, commercial banks disbursed only 1 per cent of the existing package. The Ministry has recommended that the Prime Minister instruct SBV to encourage more banks to participate in the preferential loan package and to consider extending loan terms and lowering the interest rates by 3-5 per cent to make homeownership more accessible for low-income individuals. — VNS