The Government Housing Bank (GH Bank) targets 5% growth in new housing loans, or 120 billion baht, in 2013 and still sees no sign of a property bubble, the bank's new president Angkana Chaimanat said on Wednesday.
Ms Angkana targets to extend new housing loans of 120 billion baht in 2013.
She said 91% of total clients will be those with low- to medium- income earning or not more than 70,000 of monthly income.
The bank's customers currently have loans totalling 733.1 billion baht, with total assets of 735.99 billion baht. The bank projects a net profit of 8.12 billion baht in 2013 and expects to reduce its non-performing loans to 5% of total outstanding loans, slightly down from 6% at present.
With rising property prices and sales, several parties are worried about a bubble in the real estate industry. The Bank of Thailand is considering tightening the loan-to-value ratio, which indicates how big a loan can be given based on the property value, particularly for those buying a second house.
Ms Angkana said she is confident that the bank will feel no impact from this measure, although it has offered loan packages of 0% interest for the first three years.
"We are confident that the housing loan extension at the moment is derived from real demand, not speculation. We offer 0% loans to give low-income earners the opportunity to own a house. The bank has already 8 billion baht for this campaign," she said.