GH Bank is to introduce home loans at an initial interest of 2.9% a year and a repayment term of 40 years in order to meet its lending target of 178 billion baht for this year, said bank president Chatchai Sirilai on Wednesday.
Mr Chatchai said that the special rate would be available to home-buyers seeking GH Bank loans at the GH Bank Expo 2017, to be held at the Queen Sirikit National Convention Centre in Bangkok from Aug 24 to 27.
He said the interest rate will be 3.85% below the minimum retail rate (MRR) for the first three years of the loan. Since the MRR is currently 6.75%, the special introductory rate will be set at 2.9%.
After three years, the rate will increase to MRR-1% for borrowers with instalments deducted from their salaries and MRR-0.5% for other borrowers.
The repayment period will be extended from the conventional term of 30 years up to 40 years on condition that the borrower's age will not exceed 70 years in the last year of repayment.
It was GH Bank's most attractive campaign this year and the lowest lending rate in the sector at the moment, Mr Chatchai said.
"The low rate in the first three years plus the longer repayment period will result in a monthly instalment payment of only 4,200 baht a month, instead of 5,800 baht, for a 1-million-baht loan. The interest rate is the lowest in the business," he said.
GH Bank will also waive fees for loan applications, collateral evaluation, registrations, and transactions, added Mr Chatchai. He expected that the state-owned bank would lend 20 billion baht during the four-day event.
As a result, he said, the bank should meet its lending target of 178 billion baht this year. So far it had reached 50% of that target, he added.
Its non-performing loans amounted to 52 billion baht, or 5.39% of outstanding loans.
