Social housing

Ho Chi Minh City offers home loans to officials at an interest rate of 3.2% per year.

VN (according to VnExpress) November 29, 2024 14:39

Civil servants and public employees in Ho Chi Minh City who borrow money to buy houses will have their interest rates reduced from 4.7% to 3.2% per year, calculated on a decreasing balance.

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Civil servants and administrative officials working at Thu Duc City People's Committee, August 2022

The content was announced by Mr. Pham Huu Vinh, Head of the Ho Chi Minh City Housing Development Fund Appraisal Department on the morning of November 29. This is the latest content on the policy and loan program to create housing for officials, civil servants and public employees working in the city.

Specifically, the interest rate of 3.2% per year is applied to loans from the Ho Chi Minh City Housing Development Fund. The maximum loan term is 20 years, secured by the house intended for purchase.

Borrowers must make a down payment of at least 30% of the home's value and demonstrate a stable source of income to repay the loan.

Borrowers are cadres, civil servants, and public employees of departments, branches, sectors, districts, and public service units receiving salaries from the city budget. The group of the city's armed forces includes the army, police, and militia. Full-time trade union cadres, civil servants, and public employees receiving salaries from trade union financial resources of the city's trade union organization. Cadres, civil servants, and employees of the city's Tax Department.

Not only those working in the Ho Chi Minh City government apparatus, the new policy also adds a number of new borrowing groups, including officials, civil servants, and public employees of vertical sectors in the city such as the People's Court, the People's Procuracy, the Civil Judgment Enforcement Department, the City Customs Department, the State Treasury, the Social Insurance, the Market Management Department, the State Bank of Vietnam's city branch, the Statistics Office, and the City Department of Foreign Affairs.

Borrowers must be permanent residents of Ho Chi Minh City and at the time of borrowing must not be the owner of a house or land use right, and must not have received any support policies or regimes for housing or land, except in cases where they have been approved to purchase social housing. In addition, civil servants and public employees who want to borrow must have worked continuously for at least 3 years.

By the end of 2023, Ho Chi Minh City has nearly 160,000 cadres, civil servants, public employees and workers. Of which, cadres and civil servants at all levels are more than 19,500 people, the rest are civil servants and workers.

The Ho Chi Minh City Housing Development Fund is a financial institution established and managed by the City People's Committee. Its initial charter capital is VND 1,000 billion provided by the city budget, operating on a non-profit basis. The fund's objective is to carry out the task of housing development in the city, providing financial support to low-income people and investors in the housing sector according to regulations of the Ho Chi Minh City People's Committee.

Housing loans from the above fund are a separate policy of the city government for cadres, civil servants and public employees in the area. In addition to this program, other cases such as people with revolutionary contributions, people working in the state sector, poor and near-poor households, workers in industrial zones... are entitled to preferential loans to buy social housing according to the general policy with an interest rate of 4.8-5% per year, a loan limit of up to 80% of the apartment value and a loan term of up to 25 years.

VN (according to VnExpress)
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Ho Chi Minh City offers home loans to officials at an interest rate of 3.2% per year.