Interest rate cut expected to stimulate demand for home loans

According to a report by the State Bank of Vietnam (SBV), people's demand for home loans and home repairs decreased by 1.12% in the first half of this year, while the loans increased by up to 31% last year.

Banks said they are trying to find borrowers, as after raising capital, they will fall into a capital excess if they fail to lend.

To stimulate demand for home loans, banks are cutting lending interest rates significantly compared to last year.

For example, PVcomBank has recently set aside up to VND15 trillion ($614.63 million) for preferential loans.

Currently, banks are lending with large limits, from 70-80% of the house value.