Circular 20/2021/TT-NHNN concessional loan for implementation of social housing policies

CIRCULAR

Amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 25/2015/TT-NHNN dated December 09, 2015, on instructions on concessional loan for implementation of social housing policies

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Pursuant to the Law on State Bank No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credits Institutions dated June 16, 2010, and the Law on Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Housing No. 65/2014/QH13 dated November 25, 2014;

Pursuant to the Government's Decree No. 16/2017/ND-CP No. 16/2017/ND-CP dated February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 100/2015/ND-CP dated October 20, 2015, on development and management of social houses; the Government’s Decree No. 49/2021/ND-CP dated April 01, 2021, amending and supplementing a number of articles of the Government’s Decree No. 100/2015/ND-CP dated October 20, 2015, on development and management of social houses;

At the request of the Director of the SBV Credit Department;

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of Circular No. 25/2015/TT-NHNN dated December 09, 2015, on instructions on concessional loan for implementation of social housing policies of the Governor of the State Bank of Vietnam.

Article 1. To amend and supplement a number of articles of Circular No. 25/2015/TT-NHNN

1. To amend, supplement Clause 1 Article 1 as follow:

“1. This Circular provides guidance on provision of concessional loans for implementation of social housing policies to appointed credit institutions as prescribed in the Government’s Decree No. 100/2015/ND-CP dated October 20, 2015, on development and management of social houses and the Government’s Decree No. 49/2021/ND-CP dated April 01, 2021, amending and supplementing a number of articles of the Government’s Decree No. 100/2015/ND-CP.”

2. To amend, supplement Clause 2 Article 2 as follow:

“2. Entities applying for loans to construct or renovate houses for occupation are prescribed in Clause 1 Article 16 of Decree No. 100/2015/ND-CP.”

3. To amend, supplement Clause 4 Article 6 as follow:

“4. Construction or renovation of houses: Maximum level shall be equal to 70% of cost estimates and must not exceed VND 500 million and 70% of loan collateral.”

4. To amend, supplement Clause 4 Article 7 as follow:

“4. For borrowers prescribed in Clause 2 Article 2 hereof applying for loans for construction or renovation of houses for occupation: the loan term shall be agreed by the bank and the borrower in accordance with his/her repayment capacity and must not exceed 25 years since disbursement of the first loan.”

5. To amend, supplement Clause 2 and Point a Clause 3 Article 10 as follow:

“2. Concessional loan interests to borrowers for construction or renovation of houses shall be identified and published by the State Bank of Vietnam over periods.

3. Concessional loan interests as prescribed in Clauses 1, 2, this Article should ensure principles:

a) Do not exceed 50% of average loan interest rates of all the commercial banks in the same period;”

6. To amend, supplement Clause 2 Article 16 as follow:

“2. Monetary Policy Department:

Act as an advisor for the Governor of the State Bank in determining and making public announcement of concessional loan interests (of appointed credit institutions) to borrowers as prescribed in Clause 1 and Clause 2 Article 2 of this Circular.”

Article 2. To replace, annul a number of Articles and forms of Circular No. 25/2015/TT-NHNN

1. To replace Form No. 01 and Form No. 02 with Form No. 01 and Form No. 02 promulgated together with this Circular.

2. To annul Clause 3 Article 5, Clause 3 Article 6, Article 13.

Article 3. Implementation responsibility

Chief Officer, Director of SBV Credit Department and heads of affiliates of the State Bank; appointed credit institutions, and borrowers shall implement this Circular.

Article 4. Effect

This Circular takes effect from January 20, 2022./.

For the Governor

The Deputy Governor

Dao Minh Tu

* All Appendices are not translated herein.