Banks are supportive but not easy to lend
According to Mr. Huynh Thanh Khiet, Deputy Director of Ho Chi Minh City Department of Construction, the credit package of VND 120,000 billion in preferential loans is a commitment of 4 banks (including Agribank, BIDV, Vietcombank and Vietinbank) with the Government for investors. and home buyers of social housing projects and worker housing.
The loan interest rate is set to be about 1.5% to 2% lower than the average medium and long-term lending interest rate of the above-mentioned state-owned commercial banks.
Deputy Director of Ho Chi Minh City Department of Construction said that banks are very supportive of this program. However, when accessing appraisal documents to agree to grant credit to investors, banks have their own regulations on loan conditions to ensure recovery of loans according to regulations.
Specifically, social housing and worker housing projects must have land use rights certificates, but there is a regulation that “organizations that are allocated land by the State without collecting land use fees are not allowed to mortgage land use rights certificates.” land use”. Therefore, the investor cannot use the land to implement the social housing project as collateral for the loan but must use other assets.
Mr. Huynh Thanh Khiet, Deputy Director of Ho Chi Minh City Department of Construction. (Photo: Anh Phuong)
According to Mr. Khiet, most investors in social housing projects have not yet carried out the certification procedures after having a decision to allocate land or change the land use purpose. Therefore, it will not fully meet the loan application components according to bank regulations.
In addition, a preferential credit package of VND 120,000 billion is currently being applied at 4 state-owned commercial banks. However, during the project implementation process, the investor has an agreement with other banks to grant guarantee limits to contractors, home buyers, and to guarantee houses formed in the future… so there is a difference. differences in lending regulations between banks.
For apartment renovation and rebuilding projects, according to Mr. Khiet, in addition to loan criteria according to the guidance of the Ministry of Construction, banks also require investors to have a land allocation decision and a land allocation certificate. New construction permits consider lending.
Deputy Director of Ho Chi Minh City Department of Construction said that in October 2023, the unit proposed the City People’s Committee to propose the Ministry of Construction to preside and coordinate with the Ministry of Natural Resources and Environment and the State Bank to remove Remove obstacles in implementing the VND 120,000 billion preferential credit package.
Four social housing projects in Ho Chi Minh City qualify for a credit package of VND 120,000 billion
1. Social housing project for rent in Nguyen Son Housing Area, Binh Chanh district, invested by Nguyen Son Real Estate Joint Stock Company. The project is under construction to the 8th floor and the investor needs to borrow 150 billion VND.
2. Ly Thuong Kiet Social House Project, District 10 of Duc Manh Joint Stock Company, has a loan need of 570 billion VND. Regarding construction progress, 2 blocks of area B have been topped off and 2 blocks of area A are under construction to the 9th floor.
3. Long Truong Ward Housing Project, Thu Duc City of Dien Phuc Thanh Construction and Housing Trading Company Limited. This project is under construction and the investor needs to borrow 190 billion VND.
4. Social housing project serving workers renting Thu Thiem Green House, Thanh My Loi Ward, Thu Duc City of Thu Thiem Group Joint Stock Company. The construction progress of this project is currently more than 40%, the investor needs to borrow 700 billion VND.
