Can foreigners get a loan in Vietnam? Home loans, bank borrowing, and buying an apartment explained

Yes, foreigners can borrow money from banks in Vietnam, provided they meet the eligibility conditions set out in Circular 39/2016/TT-NHNN and satisfy the individual requirements of whichever credit institution they apply to. The process is more restricted than borrowing in most Western countries, and the conditions for buying an apartment or house in Vietnam add another layer of rules on top of the standard loan criteria.

This article covers who qualifies, what documents are required, how home loan rates work, which restrictions apply, and what the full process looks like for a foreigner buying property in Vietnam in 2026.

Can foreigners borrow money from a bank in Vietnam

Under Article 2 of Circular 39/2016/TT-NHNN, Vietnamese credit institutions are permitted to lend to both Vietnamese nationals and foreign nationals. Foreign individuals are explicitly included in the eligible borrower category, provided they meet the conditions the law sets out.

This applies to personal loans, business loans, and home loans, or in our case in IRTouring, buy a big motorbike. The eligibility conditions differ slightly by loan type, but the baseline requirements are the same across all categories.

Foreign-invested enterprises companies established in Vietnam with foreign capital have a separate borrowing framework governed by Circular 12/2022/TT-NHNN, which covers medium- and long-term foreign loans and registration obligations with the State Bank of Vietnam. This article focuses primarily on individual foreign borrowers, not corporate entities.

Conditions for foreigners to get a loan in Vietnam

To borrow money from a bank in Vietnam, a foreign individual must meet the following conditions:

Age and legal capacity: The borrower must be 18 years of age or older and have full civil capacity. Individuals aged 15 to under 18 may borrow in limited circumstances if they have not lost or had their civil capacity restricted, though this is rare in practice for foreign nationals.

Legal purpose: The loan must be for a purpose that is legal under Vietnamese law. This excludes investment in prohibited business sectors, purchasing gold bars, repaying credit at the same institution (with narrow exceptions), and any transactions the law classifies as prohibited.

Feasible repayment plan: The borrower must demonstrate a credible plan for using the capital and the ability to repay the debt on schedule. Banks assess this through income documentation, bank statements, and in the case of property loans, the value of the collateral.

Residency in Vietnam: In practice, most Vietnamese banks require foreign borrowers to have a valid visa or residence permit and a minimum period of residence in Vietnam typically at least three months, and in many cases six months or longer. Some banks require a work permit or labour contract as proof of stable income.

Credit history: Vietnamese banks will check the borrower’s Vietnamese credit history through the Credit Information Centre (CIC). Foreign nationals who have not previously borrowed in Vietnam will have no local credit record, which some banks treat as a neutral factor and others treat as a risk. Providing an international credit report from your home country can help in these cases, though it is not formally required.

Documents required for foreigners to get a loan in Vietnam

The standard document set for a foreign individual applying for a bank loan in Vietnam includes:

Identity documents:

Notarised copy of valid passport
Valid visa, temporary residence card, or permanent residence card
Work permit (if employed in Vietnam)
Temporary residence certificate with a residential address in Vietnam
Confirmation from a competent authority of the borrower’s current residence status

Financial documents:

Bank account statements for the last three to six months
Original salary payment notice or employment contract
Tax payment records (if self-employed or running a business)
Proof of other income sources, if applicable

For married applicants:

Notarised copy of marriage registration certificate
Spouse’s identity documents, if the spouse is a co-borrower

For property loans specifically:

Property certificate (red book or pink book) or notarised purchase contract
Sale and purchase agreement with the developer or seller
Documents confirming the property is eligible for foreign ownership (see below)

All foreign-language documents must be translated into Vietnamese and notarised before submission. Banks differ on exactly which documents they require, so confirm the full list with the specific institution before applying.

How to buy an apartment in Vietnam as a foreigner

Foreigners have been legally permitted to buy property in Vietnam since the amended Housing Law came into effect in 2015. The rules have been updated again under the 2023 Land Law, which took effect from August 2024, but the core ownership framework for foreigners remains broadly the same.

Who can buy: Foreign individuals who are legally present in Vietnam on a valid visa, residence card, or work permit are permitted to buy residential property. Foreigners do not need to be permanent residents or hold a long-term visa, though having stable residency makes the bank loan process significantly easier.

Ownership limits: Foreigners can own a maximum of 30% of the total apartments in a single condominium building. In a villa or townhouse development, the cap is 10% of the total units, or a maximum of 250 houses per administrative ward. These caps apply to the combined ownership by all foreign nationals in a given project, not to individual buyers but in practice, popular developments in Hanoi and Ho Chi Minh City regularly hit these limits, which means the property you want may not be available to foreign buyers even if you personally qualify.

Ownership term: Foreigners can own property in Vietnam for an initial term of 50 years, renewable once for another 50 years. Vietnamese nationals own land use rights indefinitely. This distinction matters for loan applications: some banks adjust their maximum loan term based on the remaining ownership period on the property certificate.

Eligible property types: Foreign nationals can buy apartments in condominium buildings and houses in residential developments. They cannot buy agricultural land, forest land, or land directly from the state. Commercial property and office space fall under separate regulations.

The buying process in practice: Most foreign buyers work through a licensed real estate agent who can confirm whether a specific project has reached its foreign ownership cap before signing anything. The developer or seller is responsible for checking and confirming foreign ownership eligibility at the point of sale. Once a sale and purchase agreement is signed, the bank loan application can proceed in parallel with the ownership transfer process.

Home loan rates in Vietnam for foreigners

Home loan interest rates in Vietnam vary by bank, loan type, and the borrower’s profile. As of early 2026, the indicative ranges for property loans for foreign individuals at Vietnamese commercial banks are as follows:

Fixed rate period (typically the first 6 to 24 months): 6.5% to 9% per year. Banks offer a promotional fixed rate for the first one to two years of the loan, after which the rate converts to floating.

Floating rate (after the fixed period ends): 9% to 13% per year. Floating rates are typically calculated as a base rate which the bank sets and reviews quarterly or bi-annually plus a margin of 3% to 4.5%.

Loan term: Most banks offer home loan terms of 15 to 25 years for Vietnamese nationals. For foreign borrowers, the maximum term is often capped at 15 to 20 years, and some banks further limit the term to the remaining duration of the borrower’s ownership certificate or residence permit. A 50-year ownership term on a new property generally means the loan term cap is not an issue in practice.

Loan-to-value ratio: Banks in Vietnam typically lend up to 70% to 80% of the appraised property value for home loans. Foreign borrowers at some institutions face a lower cap 60% to 70% depending on the bank’s risk assessment. The bank conducts its own property valuation, which may differ from the agreed purchase price.

Which banks lend to foreigners: Not all Vietnamese commercial banks offer home loans to foreign nationals. Those that do include Techcombank, VPBank, BIDV, and a number of foreign-owned banks operating in Vietnam such as HSBC, Shinhan Bank, and Standard Chartered. The foreign-owned banks are generally more familiar with the documentation requirements and income structures of foreign borrowers, which can make the application process more straightforward.

Currency: Home loans in Vietnam are denominated in Vietnamese dong (VND). Borrowing in foreign currency is restricted under State Bank regulations and requires specific approval; in practice, nearly all retail property loans are in VND.

What foreigners cannot use bank loans for in Vietnam

Under Vietnamese banking law, certain uses of borrowed funds are prohibited for all borrowers, foreign or domestic. Banks are required to assess and monitor the stated purpose of any loan. Permitted purposes that are checked during the application include the borrower’s production or business plan, or the specific investment project the funds are directed toward.

The following uses are explicitly prohibited:

Investment in business activities or sectors that Vietnamese law classifies as prohibited
Paying expenses or conducting transactions that are illegal under Vietnamese law
Purchasing goods or services in prohibited industries
Buying gold bars
Repaying an existing credit facility at the same bank (except in narrow circumstances involving construction-phase interest that has been built into an approved investment total)
Repaying a loan at a different bank or repaying a foreign loan, unless the new loan is used to repay the old debt before maturity, the loan purpose is business activity, the new term does not exceed the remaining term of the old loan, and the original debt has not been restructured

For property loans specifically, the funds must be used directly for the purchase or construction of the property stated in the loan agreement. Diverting loan funds to other purposes is grounds for the bank to demand early repayment.

Foreign loans for companies in Vietnam: the separate framework

Foreign-invested enterprises (FIEs) borrowing money in Vietnam or borrowing from overseas operate under a different set of rules from individual foreign borrowers. The primary regulation is Circular 12/2022/TT-NHNN, which governs self-borrowed and self-paid foreign loans.

Under this framework, loans are classified as short-term (up to one year) or medium- and long-term (over one year). Medium- and long-term loans must be registered with the State Bank of Vietnam before the first drawdown. Short-term loans are generally exempt from registration unless they are extended beyond one year, at which point registration becomes mandatory.

The permitted purposes for corporate foreign loans are limited to two categories: funding production, business, or investment plans; and restructuring existing foreign debt without increasing total loan costs.

Maximum annual limits for self-borrowed foreign loans are set each year by the Prime Minister as part of the national foreign commercial loan framework.

Enterprises borrowing under this framework must submit monthly reports to the State Bank by the 5th day of the following month, covering all drawdowns, repayments, and outstanding balances.

Frequently asked questions

Can a foreigner get a mortgage in Vietnam without a work permit?

It depends on the bank. A work permit strengthens the application significantly because it demonstrates legal employment and stable income in Vietnam. Some banks will consider applications from foreigners on long-term business visas or residence cards without a work permit, but they will require alternative proof of income typically overseas bank statements, a foreign employment contract, or documented investment income. In practice, the application is harder and the terms may be less favourable without a work permit.

How much deposit do foreigners need to buy an apartment in Vietnam?

Most banks lend up to 70% to 80% of the appraised property value, which means a minimum deposit of 20% to 30%. Some banks cap the loan-to-value ratio at 60% for foreign borrowers, requiring a 40% deposit. The appraised value used by the bank is based on its own valuation, which can be lower than the agreed purchase price so budget for a deposit based on the purchase price, not just the expected loan-to-value ratio.

Can foreigners buy land in Vietnam?

No. Foreign nationals cannot own land directly in Vietnam. They can hold land use rights attached to a residential property an apartment or house for a term of 50 years, renewable once. Buying agricultural land, forest land, or bare land plots is not permitted for foreign individuals.

What is the maximum loan term for a home loan in Vietnam?

For Vietnamese nationals, home loan terms of up to 25 to 30 years are available at most banks. For foreign borrowers, the maximum term is typically 15 to 20 years, and some banks limit it further based on the remaining term of the borrower’s residence permit or the property’s ownership certificate. A foreign buyer with a 50-year ownership term on a new condominium will generally face no additional restriction from the property side.

Do Vietnamese banks check overseas credit history?

Vietnamese banks check the local Credit Information Centre (CIC) database, which only contains borrowing history from Vietnamese institutions. Foreign nationals who have never borrowed in Vietnam will have no CIC record. Some banks particularly foreign-owned institutions like HSBC or Shinhan will accept an overseas credit report as supplementary documentation, but it is not a formal requirement and will not substitute for Vietnamese income documentation.

Can a foreigner borrow in US dollars in Vietnam?

Borrowing in foreign currency in Vietnam is restricted for individual borrowers. Retail home loans are denominated in Vietnamese dong. Foreign currency loans require specific State Bank approval and are generally only available in limited circumstances for corporate borrowers. For individuals buying property, VND is the standard currency for both the purchase transaction and the loan.

Bottom line

Foreigners can borrow from Vietnamese banks, but the process rewards preparation. The eligibility conditions are clear, the documentation requirements are specific, and the banks that regularly work with foreign nationals — HSBC, Shinhan, Techcombank, VPBank — have established processes for handling applications from non-residents. The property ownership rules (50-year term, 30% condominium cap) are the part most buyers underestimate; confirm foreign ownership availability on any specific project before signing a purchase agreement or starting a loan application. If the paperwork feels heavy, a licensed local lawyer and a bank officer who handles foreign accounts regularly will move things faster than trying to navigate it independently.

About the author

Hamid is a Hanoi-based rider, and long-term Vietnam resident who has spent over a decade leading international riders through northern Vietnam on motorbike tours covering Ha Giang, Cao Bang, the northwest circuit, and the full northeast loop with IRTouring. Working with riders and travellers from across Europe, North America, and Australia has given him a practical understanding of the questions foreigners face when living, investing, and putting down roots in Vietnam. His tours are consistently reviewed by international riders as among the most well-organised and authentic in the north, with feedback highlighting route knowledge, local access, and the quality of guidance on and off the bike.