The Thai cabinet has given the green light for a civil state housing campaign for low-income earners, expecting it to benefit up to 50,000 home seekers.
Following the weekly Cabinet meeting, Deputy Minister of Finance Wisut Srisuphan disclosed that approval was been given to the civil state housing project, which was established to support low-income people as well as those with freelance careers in acquiring a home of their own.
Under the project, which will run for two years after approval, three state-run banks, namely the Government Housing Bank, the Government Savings Bank and Krungthai Bank, will provide home buyers with soft loans, under a condition that each home must be worth no more than THB 1.5 million. The eligible home can be constructed on private property or state-owned land, and can be located anywhere in the country. Those making home renovations are also entitled to the loans.
There are two types of loans to be given out. The first type is for housing estate developers, with a credit line of THB 30 billion and a maximum repayment period of two-years, while the second type is for home buyers, offering a line of credit of a total of THB 40 billion and a 30-year repayment period.
The Ministry of Finance is confident the civil state housing project will help stimulate the Thai economy, especially the real estate sector, and expects around 40,000-50,000 people to benefit.