Despite slow disbursement, bottlenecks in the deployment concessional home loan package worth VND30 trillion are gradually removed. Hence, the effect of capital flows for real housing demands begin to reveal.
Thousands of individuals and households have access to preferential credits to buy homes. Downmarket and midmarket segments start to warm up.
Gradually moving into orbit
After many years of saving, Vu Anh Tuan in Thanh Xuan district, Hanoi decided to buy a 56-square metre apartment at a price of VND14.9 million per square metre in Kim Van - Kim Lu Project (Hoang Mai district) invested by Lai Chau Construction Joint Stock Company No. 1. Short of money for the last three instalments, he decided to study the VND30-trillion package. He worked with Vietcombank and borrowed VND500 million. Now, he received the first disbursement of the credit from Vietcombank - Hanoi Branch. He expects to receive the house in late 2014.
Tuan is just one of many borrowers successful with the VND30-trillion package. Vietcombank - Hanoi Branch alone approved lending to more than 100 customers with a total value of nearly VND50 billion. As of March 25, Vietcombank reported to disburse VND318 billion for 785 customers.
Nguyen Viet Manh, Head of Credit Department - State Bank of Vietnam (SBV), said the concessional credit package of VND30 trillion is gradually moving into the right orbit. At first, the deployment was slow because of limited apartment supplies and weak coordination between local governments and concerned units. Till now, these problems have been initially removed. Disbursement is quicker month after month, he added.
Recent changes to borrowing procedures have reduced time and travel costs for borrowers. According to new rules, civil servants, officials and armed forces personnel can apply housing situation verification to employers rather than go to commune-level governments as before.
With increased demand and deals, the downmarket segment has been heated up. A representative of Dai Long Real Estate Company, the distributor of many housing projects like Kim Van - Kim Lu, VP5 Linh Dam and Duong Noi, said home deals are on the rise after Tet.
Banks actively seek customers
Currently, banks are actively seeking for customers who want to borrow from the preferential credit package. Staffs of BIDV, Vietcombank, Vietinbank and other lenders actively contact and consult customers on the credit.
Recently, Vietcombank - Hanoi Branch collaborated with Dai Long Company to answer customers who want to borrow from the package, particularly procedures and conditions for the soft credit.
In addition, the bank answers questions about loan limit, housing situation verification, income proof, insurance policy, etc. for customers.
Duc Binh
Vietnamese
