Loans For Home Repairs: Thailand Flood

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Loans for home repairs

Wichit Chaitrong

The Nation

Finance Ministry will expand first-home scheme to flood victims

The Finance Ministry will expand the first-home scheme to extend financing for home repairs to flood victims.

Deputy Finance Minister Viroon Tejapaibul said yesterday that going beyond the original focus on first-time home-buyers, the scheme would also lend to those in need of funds to repair their homes. The loans could amount to a total of Bt5 billion out of Bt20 billion to be extended by the Government Housing Bank. Under the scheme, the Bt5 billion to be loaned for home repairs will include purchase of furniture. Borrowers can avail of zero interest for the first three years and borrow up to Bt100,000 with no collateral and Bt300,000 with collateral.

Government Housing Bank yesterday announced a pact with Home Products Centre for home-repair loans to those buying furniture at the retail chain.

Viroon said the proposal would be submitted to the Cabinet for approval next week.

Due to the severe floods, the number of applicants for first-time home-buyer mortgages have been below expectations despite the three-year zero interest rate.

Meanwhile, the massive flooding that has hit several regions of Thailand has had an adverse impact on the home-furnishing market, which is suffering from a severe slowdown in the fourth quarter instead of experiencing a peak in sales as it usually does, according to Kasikorn Research Centre.

This is because the flooding expanded to the Central region, especially Bangkok and its suburbs, which are the key hubs for furniture manufacturers and distributors.

The country's home-furnishing market is worth about Bt55 billion this year and estimated at Bt60 billion next year.

More than 700,000 households have been damaged by floods, which will create an enormous demand for furniture once the waters recede. The government's first-home stimulus package is also expected to boost demand for furnishing products.

This explains why many manufacturers have been active in setting up new stores, speciality outlets and home centres. They are also improving the quality of their products, and offering better after-sales service.

Kasikorn Research Centre predicts that the total earnings of home-furnishing firms will amount to about Bt55 billion, only a 3-4 per cent increase over the previous year.

Viroon also asked finance officials gathering at a seminar in Chiang Mai to consider whether populist schemes like rice-pledging, first-car and the small, medium and large fund for villages need to be adjusted to make them more efficient.

For example, the Bank for Agriculture and Agricultural Cooperatives should not demand the immediate settlement of existing debts from farmers as soon as they receive funds from the rice-pledging scheme.

These farmers should be able to use all available funds in improving their farms, Viroon said.

A few have also applied for tax refunds under the first-car scheme in the wake of the flooding.

As of the end of October, about 1,000 people had asked the Excise Department for tax refunds of up to Bt100,000 per buyer, Deputy Finance Minister Boonsong Teriyaphirom said yesterday.

The Finance Ministry originally expected this scheme, launched in late September - before the floods hit Bangkok - and scheduled to end in 2012, to boost car sales by 100,000 units.

-- The Nation 2011-12-24

[nong38]

And at the end of 3 years what happens? These loans will be like a millstone with virtually no chance of re payment. Take the money, forget everything for 3 years and then oh dear!!

[mijan24]

The three year loan requires collateral so there is something to reposses but how about the simple 100000 1 year deal when there are no repayments made what will they take - the used furniture which will be worth zilch.

How can they advertise this when there are countless victime who have never even seen the paltry 5000 advertised (notice I said "never seen" not "never paid"). I would lay money that the books show countless lots of 5000 having been paid out - to whose bank account is the question.

Edited December 24, 2011 by mijan24

[eljeque]

Why do the people need to take out a loan for damage caused by the government's incompetence?

The government should simply pay for the damage caused by their errors, simple as that.

[sparebox2]

The govt can buy insurance to cover for such flood.

Premium might be heavy, but well woth it.

[mijan24]

The three year loan requires collateral so there is something to reposses but how about the simple 100000 1 year deal when there are no repayments made what will they take - the used furniture which will be worth zilch.

How can they advertise this when there are countless victime who have never even seen the paltry 5000 advertised (notice I said "never seen" not "never paid"). I would lay money that the books show countless lots of 5000 having been paid out - to whose bank account is the question.

Thought about this during the course of the day and realised I was concentrating on the wrong area.

What an opportunity for easy money 100000 at a time no Collateral there must be some poor deserving "bank johnnie" with a swag of friends actual or fictious who have suffered and are lining up for the 100000 - this reeks of a scheme dreamed up by the Australian Government and forwarded as an aid package.

I would not be suprised if they (Gillards people) help administer the handouts they have staff experienced in such outlandish schemes.

The Girls get together Julia & Yinluck and hand out Chrissy bonuses what a vote winner.

Sorry must sign off and pop down and get in-line even prepared to camp out to get a spot at the front of the line - You can hear the ruckas as I summon the kids, in-laws, cousins, neighbours etc etc the fatted calf has finally arrived - bye see you in the newly furnished abode.

PS: Before some dogooder makes a fool of himself and rants about those who lost everything hark back at the shots I posted of our residence in Nonthaburi which stands empty "cleaned" but empty and before we refurnish e need to raise the residence about 1 metre replace all the interior wall panels from waist height down lift and re-secret nail the used to be polished floors. I attach another shot of a next door neighbour in the bedroom note height of the water.

No complaints just dont want some soul having to extract his foot out of his gob.

Edited December 24, 2011 by mijan24

[nong38]

I think its fair to say that anyone applies for and gets this wonderful offer will little or now reason to repay it.

Please get in the line other there, behind the red shirt villagers.

[mijan24]

I think its fair to say that anyone applies for and gets this wonderful offer will little or now reason to repay it.

Please get in the line other there, behind the red shirt villagers.

I spoke with my wife about the offer (we don't need to apply as we will fund our renovations/refurbishing ourselves not rich just prefer to be self funded (independant)).

My wife has lived in Australia long enough over the years to realise "nothing in life is free" So her queries range from "how can they give/offer loans to those without a taxable income (this of course covers a big proportion of the lower social ladder population- notice the words TAXABLE INCOME).

How can they offer this when they haven't paid the published 5000 assistance to anyone that we know.(for the doubters Thais borrow in two ways Yuem (no thought of paying back) and Hi yuem (plan to pay back)?

I for one would be very interested to hear your thoughts on this and even better to know if anyone knows of anyone who actually received the (searcing for the correct terminology) (lost for words handout (no) advance of funds (no) toe the party line (maybe) lets leave it at Loan??

With Thais being notable non payers

[gregb]

I think its fair to say that anyone applies for and gets this wonderful offer will little or now reason to repay it.

Please get in the line other there, behind the red shirt villagers.

I spoke with my wife about the offer (we don't need to apply as we will fund our renovations/refurbishing ourselves not rich just prefer to be self funded (independant)).

My wife has lived in Australia long enough over the years to realise "nothing in life is free" So her queries range from "how can they give/offer loans to those without a taxable income (this of course covers a big proportion of the lower social ladder population- notice the words TAXABLE INCOME).

How can they offer this when they haven't paid the published 5000 assistance to anyone that we know.(for the doubters Thais borrow in two ways Yuem (no thought of paying back) and Hi yuem (plan to pay back)?

I for one would be very interested to hear your thoughts on this and even better to know if anyone knows of anyone who actually received the (searcing for the correct terminology) (lost for words handout (no) advance of funds (no) toe the party line (maybe) lets leave it at Loan??

With Thais being notable non payers

I've had many opportunities to try and deal with GHB in various business transactions. Generally the rule is that loans are freely given to anyone with a 20% gratuity to those signing the loan.

They don't really pay attention to who pays back the loan and who doesn't. Oh, they will ding your credit and go through the process of collection, but without collateral it will just be written off in the end. But that is OK. It is the government's money anyway.

[mijan24]

I think its fair to say that anyone applies for and gets this wonderful offer will little or now reason to repay it.

Please get in the line other there, behind the red shirt villagers.

I spoke with my wife about the offer (we don't need to apply as we will fund our renovations/refurbishing ourselves not rich just prefer to be self funded (independant)).

My wife has lived in Australia long enough over the years to realise "nothing in life is free" So her queries range from "how can they give/offer loans to those without a taxable income (this of course covers a big proportion of the lower social ladder population- notice the words TAXABLE INCOME).

How can they offer this when they haven't paid the published 5000 assistance to anyone that we know.(for the doubters Thais borrow in two ways Yuem (no thought of paying back) and Hi yuem (plan to pay back)?

I for one would be very interested to hear your thoughts on this and even better to know if anyone knows of anyone who actually received the (searcing for the correct terminology) (lost for words handout (no) advance of funds (no) toe the party line (maybe) lets leave it at Loan??

With Thais being notable non payers

I've had many opportunities to try and deal with GHB in various business transactions. Generally the rule is that loans are freely given to anyone with a 20% gratuity to those signing the loan.

They don't really pay attention to who pays back the loan and who doesn't. Oh, they will ding your credit and go through the process of collection, but without collateral it will just be written off in the end. But that is OK. It is the government's money anyway.

No exposure/experience with this but it certainly sounds like you have hit the nail on the head - which is a shame really, if it was genuine and those receiving the loans were genuine it would mean more opportunity for schemes such as this in the future.