The State Bank of Vietnam (SBV) has proposed to offer preferential lending rates for home buyers who borrow from the VND120 trillion ($4.72 billion) social housing credit package, at from 3 to 5 percentage points lower than the average lending interest rate.

Meanwhile, the rate for social housing project developers was proposed to keep at 1.5-2 percentage points lower the average lending interest rate.

The Ministry of Construction has agreed with the central bank’s proposal to create conditions for low income earners and workers at industrial zones to get access the preferential loans, Deputy Minister of Construction Bui Xuan Dung said at a press briefing following the Government regular meeting on August 5.

So far, only 34 out of the total 63 provinces and cities nationwide announced 78 projects which are eligible for borrowing from the package.

Banks have disbursed a total of over VND1.34 trillion ($52.9 million) from the package, including nearly VND1.3 trillion for developers of 12 projects and VND49 billion for buyers at five projects.