Settlement for career prosperity enabled by social housing loans

Binh Duong Social Policy Bank, over time, has disbursed loans in a timely manner to borrowers for the purpose of  social housing purchase, repairing houses. The loan capital resource has helped many low-income households realize their dream of settling down for career prosperity.

A housing debtor is offered the disbursed funds under the social housing program and other loan programs at a transaction point

Preferential loans help to settle down

Implemented Decree 100/ NĐ-CP of the Government on social housing loan policies, Binh Duong Social Policy Bank has been implementing since 2018. In 2024, Binh Duong Social Policy Bank will continue to promote the implementation of policy credit programs to the people quickly, conveniently, effectively, ensuring the right subjects.

As a beneficiary of this program, Mr. Nguyen Phuong Tay in Thu Dau Mot City was granted a loan by the Binh Duong Social Policy Bank, combined with his family's savings, to purchase a house for his family to settle down. "The social housing loan program under Government Decree 100/2024/ND-CP has many advantages, such as low interest rates and a long repayment period suitable for my family's income. The program is very meaningful, helping many families to have the opportunity to access preferential capital sources to have housing, stabilize their lives, and contribute to ensuring social security in the locality," Mr. Tay joyfully shared.

According to regulations, the eligible borrowers are individuals who have made contributions to the revolution, relatives of martyrs who are eligible for housing improvement support under the provisions of the Law on Preferential Treatment of Revolution Contributors; poor and near-poor households in rural areas; poor and near-poor households in areas frequently affected by natural disasters and climate change. Poor and near-poor households in urban areas; low-income people in urban areas; workers in enterprises, cooperatives, and industrial parks; professional officers, soldiers, and enlisted personnel of the people's armed forces; police officers, civil servants, and military personnel serving in the military; and workers and officials in the defense sector; personnel working in essential functions, as well as those working in other functions within the essential organization, receive salaries from the state budget while on duty; officials, civil servants, and public employees are subject to the regulations of the law on officials, civil servants, and public employees.

The preferential interest rate for loans at the Social Policy Bank applies to outstanding loans for the purchase, lease-purchase of social housing, new construction, or renovation of houses for the poor households as stipulated by the Prime Minister at each period (currently 0.55% per month). This is a program with preferential interest rates, long loan period (up to 25 years), maximum loan amount of 1 billion VND for renovation and new construction projects; The maximum loan amount is equal to 80% of the value of the purchase contract, lease-purchase of social housing, and housing for the armed forces. The specific loan amount is determined by the Social Policy Bank where the loan is provided based on the source of funds, ability to repay the debt, and capital utilization plan of the customer. These benefits have helped many people settle down, find employment, and stabilize their lives.

Disbursement enhanced

The new point of this program is that the loan recipients are not only applicable to poor and near-poor households in urban areas, but also for people who have made contributions to the revolution as stipulated by law and some other eligible subjects.

Social Policy Bank employees guide customers on transaction regulations at the branch

To be supported for social housing loans with preferential rates, borrowers need to have complete documentation proving their eligibility, housing situation, residency status, income, etc. Disbursement of funds is quick if borrowers research and carefully study the loan conditions to complete all necessary paperwork. Meeting these requirements, registration documents will be processed by the Binh Duong Social Policy Bank within 7 days and disbursed to customers.

For the convenience of customers to access this preferential source of capital, currently the Binh Duong Social Policy Bank directly lends at the bank's branch headquarters and delegates some content of work to political-social organizations such as: the Women's Union, the Veterans Association, the Farmers' Association and the Ho Chi Minh Communist Youth Union.

As an industrial province, the current demand for housing among the people is very high. In order to effectively implement the borrowing from the local preferential credit program in the remaining months of 2024, the Binh Duong Social Policy Bank is closely coordinating with local authorities, government agencies, and media to strengthen propaganda work so that more people can understand and access the program.

To effectively implement this program, the Binh Duong Social Policy Bank is continuing to compile and review the list of eligible beneficiaries who have access to loan capital in order to disburse funds in a timely manner according to regulations; at the same time, accelerate the process of reviewing applications and disbursing funds so that the program is implemented correctly, timely, and efficiently.

Reported by Tuong Vy – Translated by Vi Bao