Implement the Government's Resolution 33/NQ-CP dated March 11, 2023 on a number of solutions to dismantle and promote the development of the real estate market, including the content that the Government assigned the State Bank to preside over the implementation of a credit program of VND 120,000 billion for investors and home buyers of social housing projects ("Program"); On April 1, 2023, the State Bank of Vietnam issued Dispatch 2308/NHNN-TD guiding the implementation of the Program under Resolution 33/NQ-CP ("Dispatch 2308").
Official Letter 2308 defines detailed contents for participating banks to implement the Program as follows:
1. The program implementation period until disbursed revenue reaches VND 120,000 billion, but not exceeding December 31, 2030.
2. Preferential loan term: 3 years (applicable to investors) and 5 years (applicable to home buyers). The term is calculated from the date the loans are disbursed but does not exceed the loan term in the original loan agreement.
3. Loan interest rate during the preferential period: The loan interest rate applicable until the end of June 30, 2023, is 8.7% / year for Investors and 8.2% / year for Buyers. This interest rate may change according to the announcement of the State Bank, periodically for 06 months from 01 July 2023.
Upon expiry of the preferential period, the interest rate shall be agreed upon by the commercial bank and the buyer in accordance with regulations and clearly defined or clearly stated in the loan agreement between the bank and the buyer.
4. Responsibilities of banks to provide loans: Commercial banks lend capital to customers to implement the Program with their own funds. Commercial banks are solely responsible for their customer appraisal and lending decisions.
Comment: