On July 1, 2019, Mr. Chatchai Sirilai, Managing Director of the Government Housing Bank (GHB), announced that this year the bank aims to issue home loans totaling 203 billion baht, which is expected to be close to the target set. This follows the Bank of Thailand's (BOT) decision to relax the loan-to-value (LTV) regulations for GHB, allowing the bank to extend home loans for civil service welfare for another year, until March 31, 2020.

          "The BOT's LTV relaxation means that 40% of GHB's customers will not be affected and can borrow up to the full appraised value. However, 60% of customers will still be impacted. The bank is willing to absorb the capital consumption against risk assets (BIS) by lending at the full appraised value, as the BOT's LTV measures stipulate that loans cannot exceed 95% of the appraised value, to help low-income customers access credit more easily," Mr. Chatchai stated.

          Nevertheless, GHB's home loan disbursements in January amounted to 11 billion baht, in February 12 billion baht, and in March 19 billion baht, due to a rush to transfer homes before the LTV measures took effect in April. The bank issued 9.4 billion baht in loans in April, 12.5 billion baht in May (compared to the usual 17 billion baht), and 6.8 billion baht in June.

          Mr. Chatchai further mentioned that the bank has approved loans for the first phase of the One Million Homes project, which involves developers in the northeastern region, specifically the Isan Piman Group in Khon Kaen, with a loan amount of 100 million baht.

          This project consists of 210 condominium units, of which 84 units, or 40% of the total, are priced below 1 million baht, qualifying for the One Million Homes project loans from the bank.

          "The bank has set aside a loan amount of 10 billion baht for developers constructing homes or condominiums priced at no more than 1 million baht, and is ready to consider loans if the conditions are met, as this is a government urgent policy aimed at providing more low-income individuals with their own homes," Mr. Chatchai said.

          As for the first phase of home loan approvals for low-income individuals, there have been 127,000 applicants as of June 10, 2019. A total of 8,730 applications have been submitted for loans amounting to 6.35 billion baht, with 7,790 loans approved totaling 5.47 billion baht.

          The opening for loan applications in the second phase of the One Million Homes project will need to be presented to the new Minister of Finance and the new government for consideration. This will include reporting on the progress of the first phase of the One Million Homes project and adjustments to the second phase application process to ensure maximum accessibility for applicants.


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