GH Bank loans attract the middle class


The state-owned GH Bank continues to step up its campaign of low-interest home loans with the aim of attracting more middle-income people after implementing a low-interest mortgage program for low income people.

GH Bank chairman Chatchai Sirilai said that despite the pandemic, the bank is confident that demand for housing among low and middle incomes remains robust.

The bank recently launched a second phase of the “Million Houses” project worth 30-50 billion baht for low-income people who want to buy a house below 1.2 million baht, with interest rate of about 2%. The program is expected to start this month.

GH Bank’s “New Home” mortgage program is for middle-income people who want to buy a new home or condo worth 1.5-2.5 million Baht. The program has a total line of credit of 10 billion baht and offers an interest rate of 2.9% for the first three years. It is expected to start in June of this year.

This system is part of the bank’s “Business Solution” credit facility program intended for people with average incomes.

“Historically low interest rates make it easier for people to buy their own homes and reduce monthly payments,” Chatchai said.

For example, the monthly payments from borrowers were up to 8,000 baht for a loan of 1 million baht in the past. Now they would only pay 5,200 baht per month for the same loan due to the low rates, he said.

In addition, GH Bank offers long-term loans of up to 40 years, depending on the age of the borrower, Chatchai said.

The bank aims to provide home loans worth 215 billion baht this year, an increase of around 5 billion or 3% growth from 2020.

Of the total line of credit target for this year, 140 billion baht or 65% is for low-income people under the bank’s “Social Solution” loan program, with the remaining 75.4 billion being reserved for the low-interest middle-income housing program. employees.

GH Bank controls a 30% market share in the mortgage market in Thailand. The bank projects its non-performing loan ratio at 3.30% of total outstanding loans this year, below 3.60% last year.


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