The Ho Chi Minh City Real Estate Association (HoREA) has proposed allowing people buying houses worth less than VND2 billion ($84,000) to be eligible for interest rate support of 2 per cent per annum, funded by the State budget.

The interest rate support period will be from the date of loan disbursement to the time when the customer pays off the loan principal and/or interest, as agreed between commercial banks and customers, but no later than December 31 next year, according to HoREA.

The government issued Decree No. 31/2022/ND-CP in May on interest rate support from the State budget for loans to enterprises, cooperatives, and business households as part of the economic recovery master program in 2022-2023.

Those entitled to interest rate support are enterprises, cooperatives, and business households in the sectors of aviation, transport, and warehousing; tourism; accommodation and food and beverage services; education and training; agriculture, forestry and fisheries; processing and manufacturing; software publication; computer programming; and information services; and those using loans for projects building social housing or housing for workers or upgrading old apartments on the list announced by the Ministry of Construction.

The support package is worth VND40 trillion ($1.8 billion), but the disbursement rate stood at just 52.5 per cent as of October.