The 30 trillion VND home loan package will be extended from August 1st.

The State Bank of Vietnam has just issued Circular No. 25/2016/TT-NHNN dated July 29, 2016, amending and supplementing a number of articles of Circular No. 11/2013/TT-NHNN dated May 15, 2013, regulating housing support loans according to Resolution No. 02/NQ-CP dated January 7, 2013, of the Government.

The circular takes effect from August 1, 2016, to promptly meet the borrowing needs of the people.

Homebuyers will have access to preferential financing until December 31, 2016.

Accordingly, the beneficiaries of the housing support package extension are individuals and households purchasing, renting, or lease-purchasing social housing; renting or purchasing commercial housing; or constructing new or renovating their own homes. The disbursement period for housing support loans from banks using the State Bank of Vietnam's refinancing source will be extended until December 31, 2016, applicable to loans for which banks had signed credit agreements with customers before March 31, 2016, and which the banks had reported to the State Bank of Vietnam in their periodic data reports up to May 10, 2016.

The Circular also stipulates that bank disbursements during the period from June 1, 2016 to the effective date of this Circular will be refinanced by the State Bank of Vietnam when they meet the following conditions: they belong to credit contracts signed before March 31, 2016 with individual customers or households purchasing, renting, or lease-purchasing social housing; renting or purchasing commercial housing; or constructing new or renovating their own housing; and they belong to credit contracts that have been compiled and reported by banks to the State Bank of Vietnam in the periodic data report up to May 10, 2016.

For eligible disbursements, banks apply the subsidized housing loan interest rate announced annually by the State Bank of Vietnam from the time of disbursement, but not exceeding the period of application of the lending interest rate stipulated in Circular 11/2013/TT-NHNN.

In cases where the bank has collected interest exceeding the subsidized housing loan interest rate, the bank shall refund the difference between the actual interest collected and the subsidized housing loan interest rate within no more than two months from the effective date of this Circular, or offset it for the customer no later than the two most recent interest collection periods after receiving refinancing from the State Bank of Vietnam.

According to baotintuc