The Ministry of Construction (MIC) is seeking PM’s approval for a fund that could be used to provide low interest rate loans for affordable housing to help low-income families.
Low-income housing fund to be considered
The MIC said that, if people who contributed to the fund, the total would be about 30% of the value of the homes they intended to buy or repair. The money from the fund would be given in the form of low-interest loans.
The maximum loan allowed would be twice any given family's total savings, while those who have no savings would be fast-tracked for approval. Loans would be given out in 15-year terms, with fixed interest rates to be set depending on the household's savings. According to the estimates of the managing board, the average would be between 5% and 7%.
The lending rate is the deposit rate plus 1.5% which is management fee.
The MIC plans to launch pilot programmes in Hanoi and HCM City, where there is is a large demand for low-income housing. The plan, if approved, will come under the review of the PM in seven years.
