Thailand’s Government Housing Bank has set aside a THB 10 billion budget to support the government’s programme to provide soft loans for home buyers.
GH Bank President Angkana Pilun-Owad Chaimanat said the bank has drawn up a campaign to enable low- to medium-income earners to acquire loans for home purchases with total budget of THB 10 billion allocated to the project. People earning THB 30,000 per month or less will be eligible for the soft loan programme, and the maximum amount of the loan will be set at THB 3 million.
Ms Angkana added GH Bank is offering more leniency to prospective borrowers by raising the debt service ratio which is used to calculate their ability to pay off the loan. This will now be 40 percent to 50 percent of the applicant’s monthly income, as opposed to the 33 percent level previously applied.
Interest will be charged at 3.5 percent for the first year and 4.25 percent for the second year. From the third year until the end of the contract, customers who are civil servants will receive an interest rate of MRR -1 percent per annum while ordinary customers will receive a rate of MRR -0.75 percent. The maximum repayment period is 30 years.
Interested applicants have one year to file their applications with the GH Bank starting from October 19.
