GSB, GHB to provide Bt4bn in fixed-interest loans to developers under Pracharat Resident programme
The Government Savings Bank (GSB) and Government Housing Bank (GHB) are to provide loans worth Bt4 billion combined with a maximum interest rate of 3 per cent a year for developers of residential projects under the Pracharat Resident programme, on land owned by the Finance Ministry’s Treasury Department.
GSB president and chief executive officer Chatchai Phayuhanaveechai on Monday said the state bank’s loans would be provided for development under the first phase of the programme for a combined 2,000 units priced at between Bt350,000 and Bt700,000 each.
GHB president Chatchai Sirilai said his bank would provide both loans for companies that develop residential projects under Pracharat Resident, and also mortgages for customers who buy homes priced up to Bt1 million.
The state bank will offer a fixed interest rate of 3 per cent for property developers in the first three years, and then the minimum lending rate minus one percentage point in the fourth and fifth years.
GSB customers who apply for a mortgage will get a fixed interest rate of 2.75 per cent for the first four years, followed by the minimum retail rate minus 0.75 percentage point for the remainder of the loan period, Chatchai said.
The bank’s programmes for both property developers and home-buyers will start next year, the GHB chief added.