Thai Government Savings Bank promises low interest rates for home loans
The Government Savings Bank (GSB), an institution committed to enabling Thai citizens to own their homes, is prepping a credit line of 45,000 million baht to offer three home loan products with fixed interest rates for the first three years, marking the end of this year.
The initiative is expected to inject liquidity into the economy.
According to Karm Phonprakong, Deputy Spokesperson of the Prime Minister’s Office, the first product, Happy, has a credit limit of 10,000 million baht. It is designed for those looking to purchase houses and condominium units from participating projects.
The interest rate for the first three months is 0% per annum, 2.5% for months four to 12, 2.98% for the second year, and 3.55% for the third year. On average, the interest rate for the first three years is 2.8% per annum. If you borrow 1 million baht for 40 years, the initial monthly instalment is just 3,300 baht.
The second product is Mild Home, with a credit limit of 30,000 million baht. It is for customers who want to purchase, build, renovate, repair, refinance from other financial institutions. The interest rate for the first three months is 0.7% per annum, 2.98% for months four to 24, and 3.55% for the third year. If you borrow 1 million baht for 40 years, the initial monthly instalment is just 3,600 baht and you can repay it over two years.
The third product is Happy Welfare, with a credit limit of 5,000 million baht, aimed at customers working in organisations that have welfare benefits with the bank and who want to buy a house, condominium unit, refinance from other financial institutions, or pay off housing-related debts along with refinancing.
The interest rate for the first six months is 0.7% per annum, 2.75% for months seven to 12, and 2.98% for the second year, and 3.55% for the third year. If you borrow 1 million baht for 40 years, the initial monthly instalment is just 3,500 baht per month, reported KhaoSod.
Low interest rates
Karm stated that GSB is ready to support citizens to easily own their homes amidst rising interest rates. This is achieved by offering low-interest loan products with a fixed interest rate for up to three years. This is expected to facilitate customers to maintain lower monthly repayments and have enough money to meet monthly living expenses.
Karm also noted that this will result in the circulation of money in the economy, contributing to its growth. Those interested can apply for loans and complete the legal formalities by December 29, at any GSB branch across the country.
