Thailand’s Government Savings Bank (GSB) has confirmed that it is ready to implement the state’s approach to aid low-income earners as soon as it receives an order from the Cabinet.
GSB Director Chartchai Phayuhanawichai confirmed the Ministry of Finance is set to propose the that the Cabinet approve a “Civil State Homes” project that would offer low-income earners loans from a budget of THB 60 billion, derived from the GSB, Krung Thai Bank and the Government Housing Bank.
The project is expected to help 20,000 citizens acquire residences.
Conditions of the loans will include that they must be used to purchase the individual’s first home, and that the residence must not be worth more than THB 1.5 million. Interest for the loans will be stepped from 3 percent to 4 percent over the first six years, below current market rates of 5 percent and upwards.
The Director assured that GSB’s participation in the project will not impact its liquidity or result in risk as it has a deposit base of over THB 2 trillion, and that it will be stringent in vetting loan recipients.