Short Term Loan Against Property

[evanson]

Can anyone advise on the best way to secure a loan against a property here? Say a 1m baht loan against a 10m baht property over a period of a year? What would be the restrictions for as farang borrower? The property is company owned.

Thankyou

[CDB]

All I can tell you is that it's a bit of a nightmare.

I own some properties and am a permanent residence. 6 years ago, I got an overdraft facility with Bangkok Bank for 30% of the value of one property. It two months and endless paperwork, appraisals, insurance for the property and so on.

A few weeks ago I asked for an addition 1 million loan secured against the (now more valuable property). Bangkok Bank wanted:

* For me to pay for another appraisal (ok)

* A visit to my company to check me out (ok)

* Full financial statements on my Thai company and my Singapore company -- translated (getting annoying)

* A letter from my Ambassador certifying that I was a citizen in good standing (<deleted>, the permanent residence is more than enough)

* A gazillion signed photocopies of everything (work permit, passport, PR book, Alien identification, audited FS)

* Interest of MRR = 3% (<deleted>, this is a secured loan)

* Loan insurance of 50 K THB

Got that? For a fully-secured loan, they also wanted to me to pay for insurance at 5% of the cost of the principal and for me to pay 4% more interest per annum than they charge for a mortgage. And I am a permanent resident of many years, with a spotless credit record.

After talking to some others, the only advice I can give you is to stay way clear of Bangkok Bank. Try Siam Commercial Bank.

[eljeque]

You will pay a minimum of 3% agent fee and another ABSOLUTE MINIMUM of 1.5% / month

Usually the rate will be closer to 2.5% to 3% / month

You will either (Kai Fark - sell with the right to buy back at a certain price within a certain time frame) the property or

YOu can do the same with your share with a foreigner, as Thais will always want to go to the land office route, which is the normal way it is done here.

For your shares in the company, your shares and directorship of the company will be handed over to the lender with an agreement that you will then buy your shares and change directorship back in one year. Register this at the commercial office.

It is really better to go the land office route.

You can also simply make a mortgage through a Thai or foreign lender and register it at the land office. At the land office, registering a mortgage is very inexpensive, maybe 10,000 for the one million loan.

The same 3% for an agent fee and 1.5% MINIMUM to 3% / month interest is the going rate

If you are in Pattaya, I can help you find a lender very easily.

PM me for more information