Hanoi (VNS/VNA) - Demand for home loans remains low,although interest rates have decreased by 1-3 percentage points per yearcompared to the beginning of this year.

According to surveys at many banks, home loan interest rates currently rangefrom 8-10% per year. Specifically, in the group of State-owned commercialbanks, Agribank offers home loans with a first-year interest rate of 8.5% peryear. Vietcombank has a real estate loan package with interest rates of 8.5% peryear for the first 12 months, 8.8% for the first 18 months, and 9.7% the first36 months.

The interest rate for real estate loans at Techcombank in thefirst six months is 8.5% per year and 9% per year for the first year.

ACB has also launched a real estate loan package with sharplyreduced interest rates and many attractive policies. Specifically, thefirst-year interest rate fluctuates at 8% per year.

Foreign-owned banks have also stepped in to reduce home loan interestrates. For example, Shinhan Vietnam offers home loans with an interest rate of8.3% per year for the first six months and 9.7% per year in the followingyears; or 8.5% per year in the first year, 9.3% per year in the first twoyears, and 9.5% per year in the first three years.

At Wooribank, the first-year loan interest rate drops to 8% peryear, and the following year's interest rate floats at only about 8.8-9% peryear.

Hoang Hai, director of the Ministry of Construction’s Departmentof Housing and Real Estate Market Management, said that as of August 31 thisyear, outstanding loans for real estate business activities reached nearly 986.5trillion VND, an increase of more than 26 trillion VND compared to 30 July thisyear.

Of this, outstanding loans for urban area construction investment projects andhousing development projects are nearly 266.25 trillion VND, and the value foroffice projects, industrial park and export processing construction projects,and tourist, ecological and resort projects was 40.62 trillion VND, 56.57trillion VND, and 53.86 trillion VND, respectively.

However, Hai said the loans were mainly for real estate developers, while thosefor real estate buyers were insignificant.

A leader of a State-owned bank, who declined to be named, attributed the lowdemand for real estate loans by individual customers to the economicdifficulties that affect people's income. Therefore, even though there isdemand for housing, it is difficult for banks to stimulate demand for homepurchase credit in the current period. On the other hand, the real estatemarket remains quiet, so individual customers are not interested in borrowingmoney to buy houses. They expect house prices and interest rates to decreasefurther.

Compared to the beginning of this year, lending interest rates are currentlyconsidered reasonable and are expected to return to low levels, as seen duringthe COVID-19 pandemic, by the end of the year./.