The land loan for investment enables rich clients with assets worth over Bt50 million to request loans for investment in the bank's private banking by using land as collateral asset.
The bank's Private Banking Business Group Head Jirawat Supornpaibul said most of the bank customers are businessmen or large families who have lands located in cities.
He added that returns from investing in the bank's private banking is currently at 6-7 per cent campared to the land loan rate of 2-2.5 per cent.
"As the amount of land loan for investment had hit the bank's target, the bank has requested the Bank of Thailand to expand the loan's credit limit to Bt30 billion in the next two years," he said.
"There are lands worth up to Bt5 billion that are currently under consideration, while we expect to grant more loans to customers next year."
He believes that risks from requesting land loans is low because the bank can tolerate risks from granting loans and customers' investment.
Also, he said the bank grants loans up to only 70-80 per cent of collateral asset value, while rich customers would not allow the bank to seize their assets easily.
"Customers who requested for land loans foresaw opportunities to generate returns, so we expect to get more customers in the future," he said.
Published : December 11, 2020
By : The Nation