Government Housing Bank prepares THB10bn to support real estate sector

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BANGKOK – The Government Housing Bank (GH Bank) has set aside a 10-billion-baht budget in support of the government’s program to provide soft loans for home buyers.

GH Bank President Angkana Pilun-Owad Chaimanat announced that the bank has drawn up a campaign to enable low- to medium-income earners to acquire loans for home purchases under a total budget of 10 billion baht. People earning 30,000 baht per month or less will be eligible for the soft loan program while the loan ceiling is set at 3 million baht.

Ms Angkana added that the GH Bank is offering more leniency to prospective borrowers by raising the debt service ratio, which is used to calculate their ability to pay off the loan, to 40-50 percent of their monthly income as opposed to 33 percent previously.

Interest will be charged at 3.5 percent for the first year and 4.25 percent for the second year. From the third year until the end of the contract, customers who are civil servants will receive an interest rate of MRR -1 percent per annum while ordinary customers will receive a rate of MRR -0.75 percent. The maximum repayment period is 30 years.

Those interested will have one year to file their applications with the GH Bank, starting October 19th.