42 commercial banks are now eligible to provide loan guarantees for future home purchases, according to a recent circular of The State Bank of Viet Nam (SBV). The list includes both domestic and international banks and includes the following entities:
ABBank, ACB Bank, ANZ Vietnam, Agribank, CIMB Vietnam, Hong Leong Vietnam, HSBC Vietnam, LienVietPostBank, Standard Chartered Vietnam, Shinhan Bank, UOB Vietnam and Woori Vietnam.
In addition, the State Bank of Vietnam issued an additional circular, that took effect on November 15th which states that commercial banks must issue guarantees for the buyers of future property within ten days from the date that the real estate purchase contract is signed.
These guarantees mean that banks will implement financial obligations to the buyers on behalf of the developers in case developers fail to hand over property before deadlines without refunding advance purchase amounts. The amount that will be guaranteed as “maximum” will be equal to the amount of money that developers are allowed to receive in advance from buyers.