GH extends B90bn in low-rate loans

GH extends B90bn in low-rate loans

The state-owned GH Bank is offering low-rate housing loans worth a combined 90 billion baht to help borrowers finance home purchases at reduced cost, the bank's chief says.

The loans are being provided through three mortgage schemes with zero interest for a certain period, said president Chatchai Sirilai.

The first scheme, worth 30 billion baht, offers borrowers no interest for six months after three years, making its average rate 3.5% for three years and six months. Loan applicants earning a monthly income of up to 35,000 baht are entitled to a loan with a maximum amount of 3 million baht.

The second scheme, worth 10 billion baht, charges borrowers a fixed rate for the first three years before switching to a floating rate during the fourth and fifth years and then no interest rate for six months, making the average rate 3.75% for five years and six months. Those who are qualified to tap the mortgage must earn more than 35,000 baht a month, and the loan amount is unlimited.

For the third scheme, worth 50 billion baht, the interest rate is expected to be fixed for the first three years in a range of 2.65-2.70%. GH Bank will use the proceeds raised from next month's savings lottery to fund the lending.

The bank's board is set to meet to approve the launch of the 50-billion-baht prize-linked savings product on Jan 28.

In another development, Mr Chatchai said a relief measure to help 95,000 state officials who owe 8.3 billion baht to the bank will go before the bank's board for approval soon before being forwarded to the cabinet in March.

Under the measure, these civil servants will be exempt from interest rate charges for six months and will also be subject to halved principal payments on regular instalments for six months.

GH Bank's low-rate schemes have not delivered a blow to the profit target of 14 billion baht for 2020, and the bank is maintaining its home loan target of 209 billion baht this year, Mr Chatchai said.


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