GH Bank unveils new loan
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GH Bank unveils new loan

Unites with Social Security Office

Government Housing (GH) Bank, in collaboration with the Social Security Office, has launched a low-interest housing loan at a fixed rate of 1.59% for up to five years.

Speaking after signing the partnership with the office yesterday, GH Bank president Kamonpop Veerapala said this loan programme will be made available to individuals insured under Sections 33, 39 and 40 wanting to purchase or build a residence priced at no more than 2 million baht.

Any loan amount exceeding 2 million baht is subject to the bank's regular interest rate.

The programme has a total budget of 10 billion baht, said Mr Kamonpop.

He said the loan scheme should ease the financial burden for potential homeowners.

Borrowers of 1 million baht will pay 3,400 baht per month for the first five years.

Loan applications to GH Bank can be submitted from Nov 8 this year until Dec 30 next year, or until the budget is exhausted.

For years six to eight, the interest rate is the minimum retail rate (MRR) minus two percentage points, and from year nine until the contract expires, the rate is the MRR minus 0.50 percentage points. The current GH Bank MRR is 6.545%.

The bank expects the loan programme to help around 5,000 individuals gain access to home ownership.

In 2022, GH Bank partnered with the Social Security Office to offer social security members a low-interest loan with a rate of 1.99% and a budget of 30 billion baht.

The scheme was fully utilised, benefiting 25,300 people. However, the 2022 programme was only available to GH Bank customers looking to refinance their loans at a lower interest rate to ease the financial burden caused by the pandemic.

In its 44 years of operation, state-owned GH Bank has enabled 4.4 million families to own their homes.

In the past, GH Bank has collaborated with the Social Security Office multiple times.

The office deposits part of the money from the Social Security Fund with GH Bank at a low interest rate, allowing the bank to maintain low costs and offer loans at lower interest rates.

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