In an effort to stimulate the domestic real estate market, Da Nang’s banks are giving top priority to offering loans for residential land and house purchases or housing repairs.  This has created an opportunity for local middle-income earners to access preferential loans in order to buy their dream homes.

Vietcombank offered a credit package worth 3 trillion VND in May, and the figure had climbed to 6 trillion VND by August.  Preferential loans from this package are now being offered to clients wanting to buy residential land, homes and cars or repair their existing homes.  The loans are at an interest rate of 7.99% pa for the first 6 months of an under-24-month term, and the same rate for the first 12 months of an above-24-month term.

Transaction at a local bank

At the present time, many local residents are reluctant to apply for bank loans to buy homes or repair their existing ones, even though the local banks have expanded their credit offerings to the various types of borrower.  As a result, many local commercial banks have seen little credit growth in recent months.