State Bank rejects HoREA's proposal on interest rate of 30,000 billion package

The State Bank has just issued a document responding to the petition of the Ho Chi Minh City Real Estate Association (HoREA) regarding the loan interest rate of the 30,000 billion package.
Accordingly, in a recent document sent to the State Bank, HoREA proposed applying a preferential interest rate for social housing loans of 4.8%/year and an overdue debt interest rate of 130% of the loan interest rate, for all beneficiaries of social housing policies, regardless of whether they borrow from the Social Policy Bank or a designated credit institution; regardless of whether they borrow under Decree 100/2015/ND-CP or the preferential credit package of 30,000 billion.

For customers who buy houses under the 30,000 billion package and receive their houses after June 1, 2016, the following payments will be subject to commercial interest rates.

However, in response to this proposal, the State Bank said that regarding social housing loan interest rates, the agency has annually reviewed and based on market developments to issue or submit to the Prime Minister preferential loan interest rates.

The interest rate must be appropriate for each loan program, borrower and loan purpose in accordance with the regulations on housing support loan interest rates in the Housing Law, Decree 100, Resolution 02/NQ-CP and related documents.
Therefore, HoREA's proposal to apply a common interest rate for social housing loans is not in accordance with the provisions of the law.
Regarding overdue debt interest rates, Circular 39/2016 dated December 30, 2016 of the State Bank on lending activities of credit institutions and foreign bank branches to customers stipulates that when a loan is transferred to overdue, the lending credit institution shall apply an overdue interest rate not exceeding 150% of the loan interest rate within the term of the time of transferring the overdue debt.

Based on the assessment of the loan plan, equity capital, and specific debt repayment sources of each customer, the bank will negotiate with the customer on the overdue interest rate and it will be stipulated in the credit contract in accordance with the provisions of law.

Previously, since June 2013, the Government has directed the implementation of a 30,000 billion VND home loan support package with preferential interest rates of 5-6%/year. According to the State Bank's regulations, the disbursement of housing support loans by banks to customers from the State Bank's refinancing source ends when the State Bank disburses all the refinancing amount, but a maximum of 36 months from the effective date of this Circular, June 1, 2013.
The outstanding loan balance disbursed from June 1, 2016 or earlier will be applied the preferential loan interest rate of the 30,000 billion VND package. The outstanding loan balance disbursed after June 1, 2016 will be applied the normal commercial loan interest rate as agreed upon by the customer and the lending bank.
Thus, customers who buy houses under the 30,000 billion package and receive their houses after June 1, 2016, will have to pay commercial interest on the following installments.

tienphong.vn