Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

When a financial institution makes loans under the NT$800 billion Preferential Housing Loans Program, in respect of the calculation of the interest rate please follow precisely the rules specified in the “Directions for the Extension of Home Loans by Financial Institutions under the Preferential Housing Loan Program”.

The CBC has recently received public complaints that certain financial institutions did not adjust the interest rates on loans under the NT$800 billion Preferential Housing Loans Program, synchronously with the declining floating rate of Chunghwa Post’s two-year time deposits. Failure to make such adjustments in a timely manner, those financial institutions has caused the borrowers to overpay interests. This is in violation of the provisions under “the loan rate of a financial institution” in subparagraph 2 of Direction 5 “the loan condition under the program” under the “Directions for the Extension of the NT$800 billion Housing Loans by Financial Institutions under the Preferential Housing Loan Program” (please see the attachment). In case an institution violates these provisions, it shall rectify the situation immediately and report such rectifications to the CBC within one month. To fully protect the interest of the borrowers, financial institutions are required to synchronize the effective date for loan rate adjustment under this program to match date of adjustment of the postal saving deposit rates.