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Thailand: Home loan help for lower earners
More than half of this year’s new housing loan target of 215 billion baht will be provided with low interest rates to help low-income earners to purchase their own homes, says GH Bank.
State-owned GH Bank plans to offer low-interest housing loans to low-income earners under the “Social Solution” project, said GH Bank president Chatchai Sirilai.
“The total credit line of the loan programme tallies 140 billion baht from the bank’s target of total new housing loans valued at 215 billion baht,” said Mr Chatchai.
The first batch of low-interest housing loans has a total credit line of 70 billion baht. Interest rates applied for the first three years of loan repayment are capped at 3.05%, 2.75% and 4%, respectively.
This loan batch is aimed at catering to three main client groups. The first group comprises civil servants and university staff. The second and third groups are classified as those whose monthly salaries do not exceed 25,000 baht and 35,000 baht, respectively.
GH Bank is also offering low-interest loans to medical staff for their hard work during the Covid-19 outbreak. The bank yesterday signed a memorandum of understanding with the Medical Council of Thailand under the “Life Begins with GHB” project, which aims to assist 60,000 members of the Medical Council of Thailand to have their own homes.
The project has a total credit line of 5 billion baht. The interest rate applied for the first year of the loan repayment is capped at 2.39% before rising to 2.59% for the second year.
Housing loans offered by GH Bank stood at 225 billion baht in 2020, up 4.6% year-on-year and considered a record high since its inception in 1953 due to government support providing low-interest housing loans.
GH Bank’s total outstanding loans were registered at 1.3 trillion baht last year and net profit reached 10.5 billion baht, down 21.4% year-on-year.
Non-performing loans were recorded at 47.6 billion baht, making up 3.6% of the bank’s total outstanding loans.
Source: https://www.bangkokpost.com/business/2064791/home-loan-help-for-lower-earners