GSB Launches 'Low Installment Home Loan at 10 Baht per Million' with First-Year Interest Rate of 0.01% in Response to Government Policy Reducing Transfer and Mortgage Registration Fees to Just 0.01%


           The Government Savings Bank (GSB) has introduced an economic stimulus loan called 'Low Installment Home Loan at 10 Baht per Million', with a project budget of 25 billion Baht. Borrowers will pay only 10 Baht per month for each million Baht borrowed, with a fixed interest rate of 0.010% for the first year. This loan can be used for building, buying, renovating, or refinancing a home, with a repayment period of up to 40 years. This is a golden opportunity for those looking to own a home, especially as the government has reduced transfer and mortgage registration fees to just 0.010%. Applications can be submitted starting December 1, 2019.


Dr. Chatchai Payuhanawechai, Director of GSB, stated that the aim is to help citizens acquire their own homes, with financial institutions supporting the demand for loans to make borrowing easier. The bank has launched this home loan product with a special interest rate that aligns with the current demand for housing, especially towards the end of the year, whether for purchasing new homes, building on land, renovating, or refinancing. A loan budget of 25 billion Baht has been prepared, and applications can be made at any GSB branch nationwide starting December 1, 2019.


           The 'Low Installment Home Loan at 10 Baht per Million' allows borrowing based on each customer's repayment ability, with no maximum loan limit. It features a special interest rate, with a fixed rate of 0.010% for the first year, 4.350% for the second and third years, and MRR-0.50% from the fourth year onward (current MRR rate of the bank = 6.745% per year). This results in an average interest rate of 2.903% over three years. For a loan of 1 million Baht with a 20-year repayment period, the monthly payment in the first year is 10 Baht, in the second and third years it is 3,700 Baht, and from the fourth year onward, it is 8,300 Baht. Additionally, there are reduced costs for purchasing a home as per the Cabinet's resolution, which has lowered the property transfer registration fee from 2.00% to 0.01% and the mortgage registration fee from 1.00% to 0.01%.


           "It can be said that the various costs associated with home ownership have been reduced. At the same time, the bank has improved the criteria to allow for repayment periods of up to 40 years, enabling customers to choose longer repayment terms for greater flexibility and to better match their repayment capabilities. The low installment home loan has been calculated to ensure manageable payments during the current economic situation, allowing borrowers to allocate funds for other necessary living expenses and to save for emergencies," the GSB director stated.


           For more information, please contact any GSB branch nationwide or the GSB Customer Service Center at 1115, or through the bank's communication channels including the website: www.gsb.or.th, Facebook: GSB Society, and Official Line: GSB Bank.

Thank you for the information from www.gsb.or.th