BANGKOK – Commercial banks have reported better than targeted growth in home loans during the first half of the year on the back of steady economic recovering bolstering public confidence.
Bank of Ayuthaya Vice President for Home Loans, Nattaphol Luepromchai said today that new loans for homes across the board were down 9 percent during the first half of this year as the real estate market slowed and many companies cut prices due to an oversupply. Meanwhile, financial institutions during the period relaxed loan approval regulations as the debt situation caused by the first car buyer scheme began to lift.
In the latter half of the year, new loans are expected to grow 5 percent on the recovering economy and high competition among banks.
Bank of Ayuthaya in the first half of the year issued loans for real estate worth 25 billion baht, 4 percent above target and expects full year approvals to reach 59 billion baht.