Secured loans on farm land post-COVID?

[Chris4466]

Hi!

 

Apparently it's no longer possible to obtain secured loans on farm land post-COVID (according to Kasikorn Bank and SCB last week)... The land in question is in Loei (29 Rai) and has been appraised at ฿2m.

 

Pre-COVID it was possible to obtain a secured loan on any type of land (farm land included) with an annual interest rate of 6-8% (I'm not sure what the LTV ratio would have been though).

 

My thought process is whether it would be possible to spend ฿100-200k on building some kind of "house" on the land so that ฿1-1.5m could then be raised from the bank in the form of a loan? I am not sure whether having running water and electricity is a hard requirement though... Would it be possible to use water tanks and solar/gas for example?

 

It would be great to extract some sort of value from this Chanote to go towards a down payment on a home loan... It's a shame that the timing is a little off but I'm trying to see whether there's any ways to be inventive here...

 

Any thoughts/comments are welcome!!