Thailand’s Government Saving Bank (GSB) has set aside THB 500 million to help its customers refinance mortgage loans.
GSB President Chartchai Payuhanawichai told media that the bank will discuss the program at length on July 21.
He explained the campaign is designed to help those who rely on informal loan providers to mortgage their houses.
The bank admitted that this program is high risk, which is why GSB has imposed strict requirements for the loan. Each customer can borrow no more than THB 500,000 and the loan also cannot exceed half the value of the customer’s collateral assets. For example, the full THB 500,000 loan will only be granted to those who can present THB 1 million worth of collateral. The payment period will be ten years.
Once approved by the board, mortgage payers can apply for the loan until the end of September.
This project is in line with Prime Minister Prayut Chan-o-cha administration and its policy to reduce the use of informal loan providers, such as loan sharks.
This story was written by Andrew Batt, Group Editor of Dot Property Group. Send your news, views, press releases and comments to him at [email protected].
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