On May 17, the People's Bank of China decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024, and the interest rate of the first set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively, and the interest rate of the second set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively. (News link: The property market is heavy!) The central bank issued three notices in a row! ）
On the 17th, Guangzhou announced a reduction in the interest rate of personal housing provident fund loans; On the 18th, Shanghai, Beijing, Shenzhen and other places also announced the reduction of housing provident fund loan interest rates.
Guangzhou: Lowered the interest rate on personal housing provident fund loans
On the 17th, the WeChat public account of "Guangzhou Housing Provident Fund Management Center" issued a notice that according to the People's Bank of China's "Notice on Reducing the Interest Rate of Personal Housing Provident Fund Loans", from May 18, 2024, the interest rate of personal housing provident fund loans will be reduced by 0.25 percentage points, and the interest rates of the first set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively. The interest rate of the second set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively.
1. The new interest rate will be implemented for personal housing provident fund loans issued from May 18, 2024.
2. For personal housing provident fund loans that have been issued before May 18, 2024, the new interest rate will be implemented from January 1, 2025 according to the loan contract.
Shanghai: Lowered the interest rate of personal housing provident fund loans
On May 18, the reporter learned from the Shanghai Provident Fund Management Center that according to the decision of the People's Bank of China, from May 18, 2024, the interest rate of the first set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be reduced to 2.35% and 2.85% respectively, and the interest rates of the second set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be reduced to 2.775% and 3.325% respectively.
CPF Loan Interest Rate Adjustment Table
- Loans issued on or after May 18, 2024 will be subject to adjusted interest rates;
- For loans disbursed before May 18, 2024, the original loan contract interest rate shall be implemented if the loan term is 1 year, and the adjusted interest rate shall be implemented from January 1, 2025 for loans with a loan term of more than 1 year.
Beijing: The interest rate on personal housing provident fund loans was lowered by 0.25 percentage points
On May 18, the Beijing Housing Provident Fund Management Center announced that the interest rate on personal housing provident fund loans will be lowered by 0.25 percentage points from May 18.
Shenzhen: Housing provident fund loan interest rate lowered
On May 18, the WeChat public account of "Shenzhen Provident Fund" released news that the People's Bank of China decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024, and the interest rate of the first set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years was adjusted to 2.35% and 2.85% respectively, and the interest rates of the second set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years were adjusted to not less than 2.775% and 3.325% respectively.
Loans Disbursed:
Article 23 of the Regulations on the Administration of Housing Provident Fund Loans in Shenzhen stipulates that after the issuance of provident fund loans, if the interest rate of the national provident fund loan is adjusted, the provident fund center shall adjust the loan interest rate on a quarterly basis.
For personal housing provident fund loans that have been issued in Shenzhen before May 18, 2024, the adjusted interest rate will be implemented from July 1, 2024.
Undisbursed Loans:
The adjusted interest rate will be applied for personal housing provident fund loans that have not been disbursed before May 18, 2024, as well as personal housing provident fund loans applied after May 18, 2024 (inclusive).
Source: CCTV Finance