BANGKOK, 15 July 2015, The Government Saving Bank (GSB) has set aside 500 million baht to help its customers refinance mortgage loans.
GSB President Chartchai Payuhanawichai said the bank would discuss the program at length on July 21. He explained that the campaign is designed to help those who rely on informal loan providers to mortgage their house.
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 500,000 baht. The loan also cannot exceed half the value of the customer’s collateral assets. For example, the full 500,000-baht loan will be granted to those who can present a million baht’s worth of collateral.
The payment period is ten years. Once approved by the board, mortgage-payers can apply for the loan immediately until the end of September.
The project is in line with the Prayut Chan-o-cha administration’s policy to curb the use of informal loan providers.
