GHB aims to gives out more housing loan


BANGKOK, 13 Feb 2015 – Deputy Finance Minister Wisut Srisupan has assigned the Government Housing Bank (GHB) to give out more housing loans, in order to maintain its 30% grip in the nation’s total real estate credits.

According the Finance ministry, Thailand’s total real estate credit is currently at 570 billion baht, with the GHB managing to take a chunk of 27-28% of the market share worth 140 billion baht. However, the figure represented a decrease compared to the 34% market share 4-5 years ago.

Mr. Wisut said the reason behind the decline was the rise in prices of houses. The average amount of loan extended to each GHB customer is currently at 750-thousand baht. The bank aims to increase the amount to 1.5 million baht per account.

The Deputy Minister suggests that the GHB increase the credit limit per account, in accordance with the increasing prices of houses and land.

He said focus should also be made on the middle income earners in the capital and its vicinity, who wish to own a house worth 3-5 million baht. He stressed the bank should not overlook this group of customers to avoid losing a good marketing opportunity.

The GHB stated it has prepared several campaigns to give out more loans to low-income earners, in its bids to help bridge a social class gap. The bank sets aside 25.5 billion baht for these loans.