GHB to adjust housing loan rate formula

 

 

BANGKOK: -- The Government Housing Bank will readjust its housing loan rates to relate with the amounts of loans to help small borrowers and, at the same time, to reduce the bank’s non-performing loans.

 

GHB managing director Chatchai Sirilai said on Monday that the new housing loan formula would base on the concept that those who borrow more will have to pay higher loan rate than those who borrow less.

 

He pointed out that under the current practice, all borrowers are charged a standard promotion loan for the first three years after which a floating rate will be imposed which, he said, has increased the amounts of instalments to be paid by the borrowers, making many of them unable to fulfill their repayment obligations, thus ending with many of the loans being non-performing.

 

However, he said new housing loan formula was being consideration and would need the approval of the board before it goes into effect.

 

GHB’s non-performing loans ending 2016 amounted to 50.8 billion baht and the amount increased another one billion baht at the end of January this year.

 

Full story: http://englishnews.thaipbs.or.th/ghb-adjust-housing-loan-rate-formula/

 

-- © Copyright Thai PBS 2017-02-14

The repayments of total debt, and not just from your bank, should not exceed 60% of the borrower's net income.

 

At the moment, I see many government officials having deductions of up to 80% taken from their net income...and we wonder why there is a high level of corruption ...