Mee Tee Mee Ngern (Land for Loan) Company Limited, a joint venture between Government Savings Bank (GSB), Dhipaya Group Holdings, and Bangchak Corporation, is set to expand its land collateral loan program nationwide from June 2023. The program offers loan services to borrowers at a lower interest rate and uses the land as collateral.
Since its establishment in 2022, the company has offered its loan services in ten provinces, targeting small and medium-sized enterprises (SMEs) and small businesses. It aims to provide financial assistance to lenders and reduce the market interest rate for land collateral loans.
Isara Wongrung, the company’s chief executive, stated that the firm has already extended loans totaling 1.04 billion baht to its target groups in the first few months of 2023. The loans, averaging 2.89 million baht per borrower, are expected to reach a total of 3 billion baht in the first half of this year. Isara added that the company plans to expand its loan services to other provinces in June to alleviate financial issues for clients across the country.
The loan program offers a lower interest rate compared to other financial institutions, ranging from 6.99% to 8.99% per year for borrowers who permit the company to check their credit records at the National Credit Bureau and evaluate their income. Borrowers who refuse the evaluation will be charged an interest rate of 8.99% to 9.99% per year, which is still lower than the 15% rate charged by non-banks or the exorbitant 24% rate charged by loan sharks.
Borrowers can borrow up to 70% of the appraised land value, with individual borrowers limited to a maximum of 10 million baht and legal entities limited to a maximum of 50 million baht. The maximum loan term is five years, with borrowers required to pay only interest in the first year. The expansion of Mee Tee Mee Ngern’s loan services to other provinces is expected to benefit more SMEs and small businesses in need of financial assistance. (NNT)
