GHB seeks to increase credit-line cap for low, middle-income people
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GOVERNMENT Housing Bank (GHB) is talking with the Finance Ministry on raising the maximum credit line available to low-to-mid-income people from the current Bt1.5 million so more people in that category can access housing loans.
Angkana Chaimanat, president of the bank, said yesterday that the new maximum should be known by March, as the ministry is also in favour of raising the cap for this segment. The new maximum might be Bt2 million.
People who earn up to Bt15,000 a month can apply for a credit line of up to Bt1.5 million from GHB.
New lending by GHB last year amounted to Bt142.69 billion, of which Bt66.58 billion went to low-to-mid-income people who were granted credit lines of up to Bt1.5 million.
Angkana said the prospects for the housing market this year were better than last year but would not accelerate sharply.
She believes the market could grow by 5-6 per cent in line with the country’s gross domestic product.
The bank this year projects new loans of Bt140.70 billion and outstanding loans of Bt835 billion. Non-performing loans will be controlled at 5.3 per cent, down from 5.36 per cent last year.
NPLs last year improved from 6.12 per cent in 2013.
In 2014, GHB’s new lending of Bt142.69 billion was higher than the initial target of Bt134 billion, so outstanding loans and net profit were higher than projected as well.
This year, GHB projects net profit of Bt9.3 billion, up from Bt8.58 billion in 2014.
Angkana said that even though the bank targeted low-to-mid-income people, the loan-rejection rate was only 0.6 per cent because the bank worked closely with its customers and analysed their repayment ability through a pre-approval process.
She said the bank’s key strategy this year was to increase staff efficiency and develop innovative housing programmes for each segment under a customer-centric philosophy.
Moreover, the bank will try to get former borrowers who have repaid their debts to become depositors.
Total deposits at GHB as at the end of last year were Bt652.36 billion, an increase of 8.75 per cent from 2013. This year, the bank plans to mobilise new deposits of Bt49 billion.
Besides deposits, GHB raises funds through debentures, which it will gradually issue throughout the year in order to support loan expansion and replace matured debentures.
Next month, the bank will issue a debenture of Bt2.8 billion to replace one that has reached maturity.
It also plans to issue a new debenture to support loan expansion in the fourth quarter of this year.
Demand for low-rise residential projects remains, while demand for condominiums in the main cities is expected to slow.
Upcountry markets account for 66 per cent of GHB’s lending. However, the bank expects the residential market to grow in the outskirts of Bangkok as mass-transit routes expand.
In the provinces, the five special economic zones could spur growth of the property market but only in terms of factories and commercial buildings, because the zones are in remote areas.
