Thursday, November 21, 2019

GSB proposes home-loan scheme for low-income earners

Mar 11. 2016
Facebook Twitter

By The Nation

2,811 Viewed

THE GOVERNMENT Savings Bank will on Tuesday propose to the Cabinet its Bt20-billion component of a Bt60-billion project to extend home loans to low-income earners, which it insists would not affect its liquidity.

GSB president Chatchai Payuhanaveechai said that the loans would carry an average step-up lending rate of 3-4 per cent with a maturity of six years.

Currently, the market’s average five-year lending rate is 5 per cent.

Three banks have joined the Ban Pracha Rat project.

The loans would be extended to people to buy properties priced at no more than Bt1.5 million while loans would also be extended for home repairs and to purchase second-hand homes costing no more than Bt1.5 million.

GSB said that the project would not affect its liquidity given it has deposits of Bt2.1 trillion and liquidity of between Bt300 billion and Bt400 billion.

Each year the bank extends 30-40 per cent of its total loan portfolio – or between Bt60 billion and Bt70 billion – for the purchase of homes priced at less than Bt1 million.

For its total annual loans to property developers, 30 per cent is for projects with homes priced at less than Bt1.5 million, 20 per cent is for projects with homes priced between Bt1.5 million and Bt3 million and the rest for projects with homes priced at more than Bt3 million.

Tags:
Facebook Twitter
More in Business
Editor’s Picks
Top News