Housing stimulus package interest rate remains at 5%

The State Bank of Viet Nam (SBV) will keep the interest rate of the VND30 trillion (US$1.32 billion) preferential credit package for low-income homebuyers at 5 per cent in 2017.

The State Bank of Viet Nam (SBV) will keep the interest rate of the VND30 trillion (US$1.32 billion) preferential credit package for low-income homebuyers at 5 per cent in 2017. -Photo cafef.vn

SBV Governor Le Minh Hung has signed a decision stipulating interest rate for commercial banks for loans under the package.

Accordingly, loans to home buyers under the package which was disbursed before December 31, 2016 will enjoy a 5 per cent interest rate. Those who have signed credit contracts for the package but have their disbursements made after December 31, 2016 will be applied commercial interest rates according to their agreement with banks.

The interest rate under the package is announced annually by the central bank.

Every December, SBV clarifies and announces the interest rate for the following year. The interest rate would be half of the average rate of banks in the market and not exceed 6 per cent per year.

The package’s disbursement was terminated at the end of last year. By the end of 2016, the disbursement was estimated at some VND30 trillion. On November 30, 2016, the package’s disbursement was more than VND29.2 trillion and total outstanding loans were more than VND24.2 trillion.

The central bank evaluated that the package significantly contributed to helping low-income earners buy their own house while resolving inventory for the market.

As many as 50,000 people and households have been able to improve their accommodation thanks to the programme.

Source VNS