Kbank heeds BOT call for soft loans

Kasikornbank is offering 3-per-cent interest on home loans to flood victims in response to the Bank of Thailand’s policy to ease their economic hardships.
KBank’s new mortgage product is part of the government’s Bt300 billion soft-loan programme. While the central bank is coughing up Bt210 billion to fund the programme, financial institutions are chipping in at least Bt90 billion.
The five-year loans can be used for home purchases, repairs or refinancing.
Chatchai Payuhanaveechai, executive vice president, said yesterday that the KBank targeted extending Bt32 billion to more than 20,000 borrowers under this programme.
Applications are open from March 10 to December 30, 2013, or until the loans run out.
The fixed rate is for the first Bt1 million of a loan. For the portion above Bt1 million, borrowers will enjoy zero interest for six months, then they can choose one of seven interest-rate options.
The special rate is on offer only for applicants who file documents before the end of April.
“The loans are for home-owners or renters whose residence was flooded, or who want to buy a new property in a safe area. Refinancing loans will be available to home owners who free themselves from mortgage loan obligations. Covered are also existing mortgage customers of the bank who need refinancing,” he said.