Political impasse affects home loans

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BANGKOK, 22 April 2014  – A leading state bank reports that housing loans dropped 20 percent in the first quarter of 2014, thanks to the ongoing political uncertainty in the country.

Krung Thai Bank said the country’s political turmoil had been a major threat to the overall economy especially to the real estate sector. Coupled with the fact that Krung Thai Bank has been following a strict loan policy, the bank saw a 20 percent decrease in house loans extended in the first 3 months of this year.

As the bank expects the Thai economic slump to drag on for several more months, it has agreed to join hands with Krungthai Card Public Company Limited in offering a special housing loan for Krungthai card users. Under the project, Ktc cardholders are entitled to a loan worth up to 95 percent of the cost estimate of the property. Home loan borrowers will repay in installment via respective Ktc cards. The loan will carry an interest rate of 0.99% per annum for the first six months.

The program is hoped to boost both home loans and the real estate industry.