Thailand approves 55 billion baht low-interest home loans
The Thai Cabinet has approved the Government Housing Bank (GHB) to roll out a low-interest loan package worth 55 billion baht. This initiative aims to enhance housing accessibility for Thai citizens and includes two major schemes: a fixed-rate mortgage for the first five years at 3% per annum for purchasing or constructing homes, and a low-interest loan for home renovations with a 1% interest rate per annum for the first three years.
The Cabinet’s decision to allocate 55 billion baht for this low-interest loan package is part of the government’s broader strategy to enable low- and middle-income earners to own homes. This initiative aligns with the government’s policy to reduce social inequality and improve the living standards of Thai citizens.
GHB’s Managing Director, Kamonpop Veerapala, highlighted that the package is structured to facilitate greater access to housing loans at reduced interest rates, thereby supporting the financial well-being of borrowers.
The first scheme, titled Buy and Build, offers a budget of 50 billion baht. This scheme targets individuals looking to purchase land with a building or apartment, construct a building, or buy land and construct a building. The fixed interest rate is set at 3% per annum for the first five years, with variations in subsequent years depending on the market rate (MRR). The maximum repayment period can extend to 40 years. Special offers include waived appraisal fees ranging from 1,900 to 2,300 baht.
Interested applicants can obtain a code through the GHB ALL GEN mobile application starting yesterday, November 12 and apply for loans at any GHB branch nationwide from today, November 13 onward.
The second scheme, Repair and Renovate, allocates 5 billion baht for existing GHB customers. It is designed for those seeking additional loans for home improvements or to purchase equipment and facilities related to housing. The loan amount per individual cannot exceed 100,000 baht, with a fixed interest rate of 1% per annum for up to three years, reported KhaoSod.
Special features include waiving the appraisal fee of 1,900 baht without requiring additional mortgage registration at the land office. Applications for this scheme are open at GHB branches across the country from today, with the programme concluding once the allocated funds are fully disbursed, said Kamonpop.
“GHB has consistently provided low-interest loans to support low- and middle-income individuals in owning homes. Projects like the Happy Home loan have been well-received, with customers quickly utilising the full loan allocation.
“The Cabinet’s approval of the Buy and Build and Repair and Renovate schemes reaffirms GHB’s role as a state financial institution capable of meeting customers’ housing needs while maintaining manageable repayment levels.
“This time, GHB offers loans with flexible conditions for those earning less than 25,000 baht per month, allowing them to receive loans up to half of their net monthly income, thereby enhancing their chances of homeownership and improving their quality of life.”
Those interested in the Buy and Build and Repair and Renovate schemes can obtain further details from GHB branches nationwide, the G H Bank Call Centre at 0-2645-9000, or the GHB Facebook Fanpage. Updates are also available through the GHB ALL GEN application and the bank’s website at www.ghbank.co.th.
What Other Media Are Saying
- Bangkok Post reports Thailand’s government plans to introduce 55 billion baht in soft loans for the property sector, aiming to stimulate demand and supply amidst fully utilised existing measures, enhancing economic recovery. (read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why is the Thai government focusing on low-interest housing loans?
To reduce social inequality and improve living standards by enhancing housing accessibility for low- and middle-income earners.
How might these loan schemes impact Thailand’s housing market?
Increased access to affordable loans could boost housing demand, potentially leading to growth in the construction and real estate sectors.
What if the loan package exceeds its budget demand?
If demand surpasses the budget, the government may consider expanding the programme or allocating additional funds to meet housing needs.
How do these schemes align with global trends in housing finance?
They mirror global efforts to support affordable housing, reflecting a growing trend of governments facilitating homeownership through financial incentives.
What innovative features could be added to enhance these schemes?
Incorporating digital platforms for loan management and expanding eligibility criteria could further streamline access and broaden participation.
