|A dilapidated shack of a poor family in suburban Hiệp Phước Commune, HCM City. Poor households in rural areas can get loans up to VND25 million to build or repair their houses from October 2015. — Photo phapluattp.vn
HA NOI (VNS) — Each of poor households in rural areas nation-wide can get loans up to VND25 million to build or repair houses from October 2015.
This is part of Prime Minister Nguyen Tan Dung's newly approved programme for providing housing support to the poor.
The programme is expected to help 311,000 poor households in rural areas build safe houses, thus gradually stabilising and improving their living standards.
Under the decision, eligible poor families can borrow a maximum of VND25 million (nearly US$1,150) per household from the Vietnam Bank for Social Policies to repair their houses or build new ones.
The annual interest rate will be three per cent, with a maturity period of 15 years, including a five-year grace period.
The maximum time permitted to clear the loan will be 10 years. From the sixth year, the borrowers will have to return at least 10 per cent of the loan yearly.
To apply for the loans, families must be identified as poor households according to the criteria set in Decision 09/2011/QD-TTg, issued on January 30, 2011.
Accordingly, a poor rural household is a household with each member earning an average of up to VND400,000 per month (nearly US$18.5).
Only poor families in rural areas that earn their living by working in the fields of agriculture, forestry and fisheries are eligible for the loans.
The borrowers must meet three other requirements.
First, they do not have houses or have one in such a bad condition that it faces the risk of collapse, and they cannot afford to repair it.
Second, they have never received any kind of housing support from other government programmes or from any socio-political organisation.
Third, they have benefited from other housing programmes earlier, but their houses have collapsed or have been seriously damaged by natural disasters, and they are yet to find funds to repair or rebuild them. — VNS