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Real estate credit increased slowly

Real estate credit increased slowly

Monday 15, 06 2020
The demand for loans to buy houses from individual customers is still quite low although interest rates have decreased

Borrowers wait for prices to fall

Mr. Nguyen Hoang Minh - Deputy Director of State Bank, Ho Chi Minh City Branch, said as of the end of May, real estate loan credit in the area increased by only 0.8% compared to the beginning of the year. This growth is much lower than in the same period of previous years due to the influence of Covid-19. Credit outstanding of banks is about VND 250,000 billion, accounting for 12.2% of total credit outstanding. In addition, real estate credit increased slowly at the time when the average lending interest rate of banks to businesses was only about 8 - 10% per year, for individuals 8 - 11% per year.

Besides that, Mr. Pham Quang Thang - Deputy General Director of Techcombank, said that real estate credit is slowing down because customers are listening, exploring the market, including psychology to wait for the price to decrease or not before the picture. effects of Covid-19. At present, the bank has not tightened the conditions for real estate credit lending to individuals but still maintains targeting borrowers with real housing segment, priced at VND2-3 billion. , young customers.

As a customer who has just been disbursed 1.1 billion VND by a bank to buy a project apartment in Binh Duong province, Mr. Do Cuong (company employee in District 1, Ho Chi Minh City) said that due to the bank's cooperation with the investor, the disbursement is resolved fairly quickly. With determination to borrow in this period, according to Mr. Cuong because the investor has paid interest in the first year, the next year the interest rate is about 10 - 11% / year. The bank also required him to buy loan insurance with a fee of VND 15 million to avoid risks in some cases of failure to pay debts.

Real estate credit increased slowly

Low-interest rates

Lending interest rates that commercial banks are now deploying to buy housing for individuals are from 8% / year or more. For example, HDBank has implemented the program "An tâm vay - Tích lũy ngay" for individuals who buy houses with an interest rate of 8% / year, the grace of principal up to 24 months. With the program "gap" of principal repayment time, this bank helps reduce debt repayment pressure for customers when income is affected, facilitates asset accumulation and meets the essential consumption needs of customers. Similarly, LienVietPostBank launches a home loan with an interest rate of 8.29% per annum, the margin after the preferential period is equal to the deposit interest rate plus 4% per annum, the maximum loan is 100% of real estate. Purchase, loan period up to 20 years. Techcombank lends to customers from 1 - 5 billion dongs, the fixed interest rate is 8.29% / year for 12 months; from VND 5 billion or more, the fixed interest rate is 8.29% / year within 12 months ... After the fixed time, the floating interest rate applied with a competitive margin is only from 2.3% / year. Loan limit accounts for 80% of real estate value, the loan period is up to 35 years ...

For social housing currently has an interest rate of 4.8% / year, but Chairman of the City Real Estate Association. HCM - Le Hoang Chau said the supply of social housing in the city. HCM does not, so homebuyers do not sign a contract with the investor to borrow this interest rate.

Recently, the City Bank for Social Policies. HCM even proposed to introduce social housing buyers because this bank was allocated 10 billion VND at an interest rate of 4.8% / year.

In fact, individuals who are currently borrowing commercial banks to buy houses at the interest rate of 9-10% / year, in case individuals turn to social policy banks, they must liquidate their old loan contracts and pay fees. penalties for early repayment. Therefore, the bank of social policies must make sure that individuals lend, how much interest they can borrow to transfer.

Related loans for social housing in the city. City, representative of social policy bank said that in 63 provinces and cities that this bank lent, outstanding loans in the city. HCM accounted for 1/33 total outstanding loans. Total outstanding loans for social housing from 2018 to date are over VND 3,041 billion, the number of outstanding customers is nearly 9300 people. In particular, TP. HCM loan to 92.14 billion with 203 outstanding customers. In addition to the top-down funding source, the local social policy bank also receives money from that province for lending, such as Da Nang in 2019 transferred to the social policy bank VND 50 billion for housing loans. The social policy of the Social Policy Bank is that provinces that disburse slowly will move to other provinces and cities, so there is a shortage of places and where there is no lending.

In the coming time, the market will have more low-interest capital for social housing loans. Vietnam government has just assigned the Ministry of Planning and Investment to balance an additional VND 1,000 billion for the social policy bank under Resolution No. 71/2018 / QH14; at the same time, adding VND 2,000 billion to subsidize interest rates for 4 commercial banks designated by the State Bank to provide support for lending to social houses.

>> 
The Covid-19 epidemic changed the landscape of the resort real estate market in Vietnam

Source: Vietnam Finance

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Investment

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