The Cabinet has ordered State Bank (SB) in collaboration with Ministry of Construction to make use of financial support package worth VND30,000 bln for segment development of social housing and commercial housing according to governmental Resolution No 02. That comes also with many incentives for individuals and businesses. Binh Duong newspaper interviewed Deputy Director of State Bank – Binh Duong branch Mr. Nguyen Phu Cuong about this issue.  A corner of Hoa Loi social housing invested by Becamex IDC- Sir, how much does the lending capital cost to supply credit to housing purchasers? Which commercial banks will be involved?- According to Circular No 11/2013/TT-NHNN signed by the SB, since June 1st, a financial package worth VND30,000 bln for housing support will formally implemented. This is a refinancing support for 5 commercial banks to carry out credit policy, including: Vietinbank, BIDV, Agribank, Vietcombank and MHB. In order to supply beneficiaries purchasing, renting housing, 70% of credit capital will be used for low-income earners, people really need to buy houses. 30% of program budget (about VND9,000 bln) is for enterprises being investors of housing construction projects.- What are the conditions, interest rate and loan term will be applied?- According to Circular 11, there are 2 groups of beneficiaries. Individuals being low income earners, officials, army officials…, are required to be buyers, renters of houses having an area of lower than 70 sqm and a price of lower than VND15 mln/m2. Beneficiaries also have to have contracts with investors and people want to borrow money to make balance payments of housing purchases since January 7th, will be granted too. However, every household is supported only one loan as well as have to pay themselves maximum 20% of the total housing value. In fact, banks will fix the minimum required self-payment but does not exceed 20%. That means, if a commercial bank grants a credit line of above 80%, the required available fund of borrower can be decreased. Enterprises that are eligible for loans have to meet adjusted provisions of the Construction Ministry’s Circular 07 and the SB’s Circular 11. After getting approval of the Construction Ministry, loan records will be transferred to the SB to be estimated payment abilities. Then evaluation of the SB will be informed to commercial banks for contract signing. Besides, an enterprise must have available capital of minimum 30% project’s total value and do not have loans with other banks. Loan term of individual is minimum 10 years or shorter depended on agreement with banks. Maximum term to businesses is 5 years. Useful interest rates are about 50% of average loan interest rate of banks, but do not exceed 6%/ year. Thus, during the term, the interest rate will always tend to be decreased. - Is collateral necessary for the loans, sir?- Measures to ensure loans will be decided by specific banks based on laws. - In order to supply timely capital housing buyers as well as lead credit flow to proper addresses, what has been guidance of SB – Binh Duong branch to commercial banks?- Firstly, banks are urged to issue official documents in terms of loans supporting housing purchases. We will monitor, require banks to implement correctly the 2 aforementioned circulars. Individuals, businesses have demands of borrowing money for housing purposes can contact these above commercial banks for detailed information. - Thank you!Reported by Thanh Hong – Translated by Ngoc Huynh