Bangkok – The Government Savings Bank (GSB) has prepared to offer low interest loans through its “Civil State Homes for Low Income Earners Project”, aiming to dole out 30 billion baht to low income earners for home purchases starting this March.
GSB President Surachai Danaitangtrakul, elaborated that the project targets low and medium income earners and seeks to enable them to purchase their own homes. The project is to be presented to the Cabinet next week so that it can be approved for implementation by March.
GSB will join with the Islamic Bank of Thailand to offer up homes that were used as collateral in non-performing loans to low income earners. Up to 12 thousand units will be presented in the first batch with an additional 2,900 units expected from the Treasury Department.
The terms of the project mandate that eligible applicants must make between 15-20 thousand baht a month and have never owned real estate before. Such individuals will be able to request loans up to 700 thousand baht for homes and land, 600 thousand baht for apartments and 500 thousand baht for homes offered by the Treasury Department. Interest for the loans will be 2 percent over 3 years with the government subsidizing 1 percent to the GSB each year. Payments will start at as low as 3,000 baht a month.
