The Government Savings Bank (GSB) has prepared to offer low interest loans through its “Civil State Homes for Low Income Earners Project”, aiming to hand out THB 30 billion to low income earners for home purchases starting in March.
GSB President Surachai Danaitangtrakul said the project will target low- and medium-income earners, and seeks to enable them to purchase their own homes.
The project will be presented to the Cabinet next week so that it can be approved for implementation by March.
GSB will join with the Islamic Bank of Thailand to offer up homes that were used as collateral in non-performing loans to low income earners.
Up to 12,000 units will be presented in the first batch with an additional 2,900 units expected from the Treasury Department.
The terms of the project mandate that eligible applicants must make between THB 15,000 and THB 20,000 per month and have never owned real estate before.
Such individuals will be able to request loans of up to THB 700,000 for homes and land, THB 600,000 for apartments and THB 500,000 for homes offered by the Treasury Department.
Interest for the loans will be 2 percent over three years, with the government subsidizing 1 percent to the GSB each year. Repayments will start at THB 3,000 baht per month.