State-owned GH Bank has rolled out a low-rate mortgage package charging 2.90% interest for the first two years in an effort to boost the bank's housing loan demand.
The bank has set aside 5 billion baht for cheap mortgages, which charge borrowers 3.85 percentage points below the minimum retail rate (MRR) for the first two years, equivalent to 2.90% based on GH Bank's current MRR of 6.75%.
The bank charges an MRR minus 1 percentage point for those who work at companies that have contracts with the bank and MRR minus 0.50 percentage points for general borrowers, president Chatchai Sirilai said.
The package's borrowers are subject to waivers of the origination fee of 0.1% of the borrowing amount, the appraisal fee, a 1,000-baht registration and transaction fee, and a mortgage fee of 1% of the borrowing amount.
The bank offers up to 40 years for the loan's term, he said.
If applicants want additional housing loans, the MRR is charged.
The loan is available from Feb 10 for those who complete the mortgage transaction by March 30.
The state-backed mortgage lender has set a lending target of 189 billion baht this year, up last year's target of 6%.
GH Bank's mortgage outstanding portfolio amounted to 1.02 trillion baht at end-2017.
Mr Chatchai said the bank also offered a special 18-month time-deposit product at an interest rate of 1.80% per year per account for pooled deposits from cousins or friends with a combined amount starting from 10 million to 200 million baht.
All who are in the pooled deposits accounts are required to put a minimum 10,000 baht per transaction.
If the outstanding deposit in a pool is under 10 million baht or above 200 million, the deposit will receive interest 1.50% per year per account.
Special deposit products are available during Feb 12 to Aug 24.
At the end of 2017, GH Bank's total assets surged by 8.7% to 1.06 trillion baht.
