GSB may raise budget for Baan Pracha Rath home loans
GOVERNMENT Savings Bank might put aside more funding for “Baan Pracha Rath” loans to provide homes for low-to-middle-income earners after the total value of registrations from more than 25,000 applicants exceeded Bt31 billion yesterday.
To celebrate its 103rd anniversary, GSB extended the deadline for customers to register in the Baan Pracha Rath project by one day from the original deadline of Thursday.
“We estimated that 60-70 per cent of the total were likely to be shortlisted for getting the right to borrow under this programme,” GSB president Chatchai Payuhanaveechai said.
An announcement on the qualified customers is expected within 30 days. Chatchai believes that the total value of approved loans might be close to the budget of Bt20 billion that the bank has set aside for this programme.
“If the total value of qualified loans is more than the allocated budget, we will propose to the bank’s board an increase in the amount to cover the surplus demand. However, if the value is less than the budget, the bank might open a new round of applications for customers who are still interested in this programme,” he said.
Isara Wongrung, senior vice president for GSB’s personal customer group, said that under the Cabinet’s resolution on the Baan Pracha Rath project, the board was allowed to take this matter into consideration.
As of March30, 25,112 people had applied at GSB for the right to borrow a total of Bt27.837 billion under the Baan Pracha Rath project.
“About 55 per cent of the applicants registered at the [GSB] headquarters, while the rest were in the provinces. This indicates that low-to middle-income earners in both Greater Bangkok and upcountry want to have their own house but previously did not have the chance to get a low-interest loan,” Isara said.
Though the lending terms under the scheme would be relaxed, Isara said this would not increase the bank’s non-performing loans.
GSB is one of three state-owned banks joining the Baan Pracha Rath scheme. The other two are the Government Housing Bank and Krungthai Bank.
Under this scheme, GSB offers mortgages at zero interest for the first year for customers buying a property priced lower than Bt700,000, or for a renovation of up to Bt500,000. Customers seeking a mortgage for a home costing between Bt700,001 and Bt1.5 million can also benefit from a fixed interest rate of 3 per cent during the first three years.
