Borrowers of the 30,000 billion package no longer have to worry about interest rates doubling.

If the loan is disbursed before 2017, home buyers under the VND30,000 billion package will still enjoy preferential interest rates instead of having to pay commercial interest rates that could be twice as high.

The State Bank has just issued Circular 25, officially solving the problem for home buyers of the 30,000 billion VND package disbursed after March 31, 2016. Accordingly, the Prime Minister has agreed to the State Bank's solution, which allows for an extension of the refinancing disbursement period for individuals and households borrowing to buy, rent, hire-purchase houses, build new houses or repair houses signed before March 31.

For contracts signed before March 31 this year but disbursed in 2017, home buyers will enjoy interest rates agreed with commercial banks.

However, the State Bank also clarified that this extension only applies to disbursements before December 31, 2016. Thus, with contracts signed before March 31 this year but disbursed in 2017, home buyers will not enjoy the fixed annual preferential interest rate but must pay according to the interest rate agreed with the commercial bank.

In addition, the State Bank also said that it will stop disbursing refinancing capital in accordance with regulations for customers who are households and individuals investing in renovating or building new social housing, investors in social housing construction projects, and commercial housing projects that have converted their functions to social housing (corporate customer groups).

In particular, in cases where individual customers have temporarily accepted the home purchase interest rate as agreed with the bank (instead of the preferential interest rate of 5%) while waiting for instructions from the Prime Minister and the State Bank, the difference will also be refunded.

Circular 25 takes effect from tomorrow - August 1.

According to VNE