Bank Borrowing

[strawberry]

Hi All,

I'm in the process of building a house. ran out of money some time back and have kept going by booking up at the local building supplier. At this stage I'm up for 100K We got approached by friends (?) of my wife saying they could lend money at the rate of 2 baht per 100 per month. No big deal for me, but today they offerred to mortgage their property to the bank at the bank rate of 3 baht per 100 per month. In my mind that comes to 30% per year, I'm finding this hard to believe they also want to claim the house if my wife doesn't make the payments.

My pension allows me to spend 45K per month on materials and I have almost bought all I need.

Basically what I'm looking at here is what is the bank interest as I find it difficult to believe that this is 30% per year. I suspect these Friends are looking to scam us.i already have 100K from them on the assurance that we don't need to repay them until the house is finished.

Regards Joe

[h90]

Hi strawberry,

I don't know the bank rates, but there are so many lend and borrow stories in Thailand, and all if looking at them clearly are at least very strange.

If your pensi allows you to spend 45K per month, your pensi might be 60 K or something like that. Maybe you can speak with your bank in your homeland, if it is possible that you can get a nice credit limit on your bank account at home, as anyway every month the pensi is comming.

I got from my bank without regular income in Austria 500.000 limit, after beeing very very charming to the fat and very ugly bank lady who decide that.

But I wouldn't do that "friends" thing. 2 or 3 % per month sound a lot.

Hi All,

I'm in the process of building a house. ran out of money some time back and have kept going by booking up at the local building supplier. At this stage I'm up for 100K We got approached by friends (?) of my wife saying they could lend money at the rate of 2 baht per 100 per month. No big deal for me, but today they offerred to mortgage their property to the bank at the bank rate of 3 baht per 100 per month. In my mind that comes to 30% per year, I'm finding this hard to believe they also want to claim the house if my wife doesn't make the payments.

My pension allows me to spend 45K per month on materials and I have almost bought all I need.

Basically what I'm looking at here is what is the bank interest as I find it difficult to believe that this is 30% per year. I suspect these Friends are looking to scam us.i already have 100K from them on the assurance that we don't need to repay them until the house is finished.

Regards Joe

<{POST_SNAPBACK}>

[ray23]

Hi strawberry,

I don't know the bank rates, but there are so many lend and borrow stories in Thailand, and all if looking at them clearly are at least very strange.

If your pensi allows you to spend 45K per month, your pensi might be 60 K or something like that. Maybe you can speak with your bank in your homeland, if it is possible that you can get a nice credit limit on your bank account at home, as anyway every month the pensi is comming.

I got from my bank without regular income in Austria 500.000 limit, after beeing very very charming to the fat and very ugly bank lady who decide that.

But I wouldn't do that "friends" thing. 2 or 3 % per month sound a lot.

Hi All,

I'm in the process of building a house. ran out of money some time back and have kept going by booking up at the local building supplier. At this stage I'm up for 100K We got approached by friends (?) of my wife saying they could lend money at the rate of 2 baht per 100 per month. No big deal for me, but today they offerred to mortgage their property to the bank at the bank rate of 3 baht per 100 per month. In my mind that comes to 30% per year, I'm finding this hard to believe they also want to claim the house if my wife doesn't make the payments.

My pension allows me to spend 45K per month on materials and I have almost bought all I need.

Basically what I'm looking at here is what is the bank interest as I find it difficult to believe that this is 30% per year. I suspect these Friends are looking to scam us.i already have 100K from them on the assurance that we don't need to repay them until the house is finished.

Regards Joe

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

From what I have found thus far the banks here will lend a farrang married to Thai person about 70% of the cost of a house. That is if your wife is not working and the loan is based on your income, The wife still own the house as you can not. They rates vary from bank to bank. I think it is time that you go bank shopping and see what you can find. Never know the bank may even consider what you have completed as a part of the down if not all of it.

Would you let your friends loan you money out of the goodness of thier heart at a 30% annum rate at home. I doubt it. It is really not much different here if you can prove income you can get a standard bank loan on secured loan just as you can at home. GO TO THE BANKS

[Dragonman]

Hi strawberry,

I don't know the bank rates, but there are so many lend and borrow stories in Thailand, and all if looking at them clearly are at least very strange.

If your pensi allows you to spend 45K per month, your pensi might be 60 K or something like that. Maybe you can speak with your bank in your homeland, if it is possible that you can get a nice credit limit on your bank account at home, as anyway every month the pensi is comming.

I got from my bank without regular income in Austria 500.000 limit, after beeing very very charming to the fat and very ugly bank lady who decide that.

But I wouldn't do that "friends" thing. 2 or 3 % per month sound a lot.

Hi All,

I'm in the process of building a house. ran out of money some time back and have kept going by booking up at the local building supplier. At this stage I'm up for 100K We got approached by friends (?) of my wife saying they could lend money at the rate of 2 baht per 100 per month. No big deal for me, but today they offerred to mortgage their property to the bank at the bank rate of 3 baht per 100 per month. In my mind that comes to 30% per year, I'm finding this hard to believe they also want to claim the house if my wife doesn't make the payments.

My pension allows me to spend 45K per month on materials and I have almost bought all I need.

Basically what I'm looking at here is what is the bank interest as I find it difficult to believe that this is 30% per year. I suspect these Friends are looking to scam us.i already have 100K from them on the assurance that we don't need to repay them until the house is finished.

Regards Joe

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

From what I have found thus far the banks here will lend a farrang married to Thai person about 70% of the cost of a house. That is if your wife is not working and the loan is based on your income, The wife still own the house as you can not. They rates vary from bank to bank. I think it is time that you go bank shopping and see what you can find. Never know the bank may even consider what you have completed as a part of the down if not all of it.

Would you let your friends loan you money out of the goodness of thier heart at a 30% annum rate at home. I doubt it. It is really not much different here if you can prove income you can get a standard bank loan on secured loan just as you can at home. GO TO THE BANKS

<{POST_SNAPBACK}>

Agree. Only get a proper bank loan/mortgage. They offered my wife one based on my pension statement and 3 months UK bank statements. Annual rate just over 5%.

[cmsally]

As the others say GO TO THE BANK!

What kind of friend would lend you money at 30%

If you &/or your wife can own property then there's no reason why you can't get a loan.

Especially with regular income coming in should be no problem.

See:

http://www.scb.co.th/eng/eng_main_retail_loan_hhome.shtml

Loan to build /repair/finish home is quoted as having interest rate at MLR which according to their site is presently 5.75%

PS Check on the age criteria. If you don't qualify get your wife to apply.

But if its a small amount and short contract, take proof of your regular income and my guess is you will get it.

[strawberry]

Many thanks People

My problem in getting money from the bank is that the land has no papers. OK I've been here in Thailand to know that that is risky building a house on this land. We have been using this land for a number of years and my wifes family have been using it for a couple of generations. So Thaksin promised to give papers to farmers for land, and last year the west side of the village was issued with papers and this year our side of the village is to be issued with papers. So I decided to give it a go and take what I think is a slight risk. I havent approached the bank because I'm under the impression you need to have the papers to get a loan.

I'll take the missus to the bank on Monday and see if I can talk them into lending me on the strength of my pension after all they have been receiving money directly from my pension fund for 10 years now.

Regards Joe

[ray23]

Many thanks People

My problem in getting money from the bank is that the land has no papers. OK I've been here in Thailand to know that that is risky building a house on this land. We have been using this land for a number of years and my wifes family have been using it for a couple of generations. So Thaksin promised to give papers to farmers for land, and last year the west side of the village was issued with papers and this year our side of the village is to be issued with papers. So I decided to give it a go and take what I think is a slight risk. I havent approached the bank because I'm under the impression you need to have the papers to get a loan.

I'll take the missus to the bank on Monday and see if I can talk them into lending me on the strength of my pension after all they have been receiving money directly from my pension fund for 10 years now.

Regards Joe

<{POST_SNAPBACK}>

That should be interesting to see what happens. Just a guess bit I think thye are going to want some sort of security in the form of land title.

[Dragonman]

Many thanks People

My problem in getting money from the bank is that the land has no papers. OK I've been here in Thailand to know that that is risky building a house on this land. We have been using this land for a number of years and my wifes family have been using it for a couple of generations. So Thaksin promised to give papers to farmers for land, and last year the west side of the village was issued with papers and this year our side of the village is to be issued with papers. So I decided to give it a go and take what I think is a slight risk. I havent approached the bank because I'm under the impression you need to have the papers to get a loan.

I'll take the missus to the bank on Monday and see if I can talk them into lending me on the strength of my pension after all they have been receiving money directly from my pension fund for 10 years now.

Regards Joe

<{POST_SNAPBACK}>

That should be interesting to see what happens. Just a guess bit I think thye are going to want some sort of security in the form of land title.

<{POST_SNAPBACK}>

Yes, let us know what they say, as this is the case in large areas of Isaan.