The Government Housing Bank (GHB) is assisting customers affected by COVID-19 through 10 measures totaling 443.22 billion baht, with an additional loan of 20 billion baht available for family members of those impacted. The interest rate is fixed at 1.99% per annum for the first two years under the 'GHB We Won't Abandon You' housing project.

Mr. Kamolphop Veerapala, Deputy Managing Director and Acting Managing Director of Government Housing Bank (GHB), revealed that since the outbreak of COVID-19 in early 2020, the economic impact on Thailand has been increasingly severe.

As a state-owned financial institution with the mission to provide housing for Thais, GHB has supported the policy of Dr. Uttama Savanayana, Minister of Finance, aimed at alleviating the impact on customers and revitalizing the economy. Chairman Mr. Parinya Patthanapakkadee has mandated GHB to respond to this policy urgently. The bank's board has approved various measures that have been gradually implemented since January 2020, including interest rate reductions, principal payment holidays, and extensions of repayment periods, as part of the 'Customer Assistance Measures for Those Affected by the COVID-19 Outbreak' and the 'GHB Helping Thais Build the Nation' project, totaling 10 measures. These measures genuinely assist customers in distress, allowing them to choose the appropriate assistance based on their circumstances to reduce financial burdens and maintain their homes. As of May 23, 2020, at 6:00 PM, a total of 446,747 accounts had received assistance, with a total loan amount exceeding 443.22 billion baht.

Customer Assistance Measures for Those Affected by the COVID-19 Outbreak
Measure 1: Reduce loan interest rates and payment installments for up to 6 months, with a loan interest rate of 0.01% per annum for customers affected by income loss from Chinese tourists. 861 accounts participated with a loan amount of 997 million baht.
Measure 2: Reduce loan interest rates and payment installments for up to 4 months, with a reduced loan interest rate of 1.00% per annum for customers whose monthly income has been affected by domestic tourists in high-risk groups. 14,022 accounts participated with a loan amount of 14.607 billion baht.

GHB Helping Thais Build the Nation Project
Measure 1: Principal payment holiday for 3 months, with interest payments only for customers with loan amounts not exceeding 3 million baht. 61,578 accounts participated with a loan amount of 58.754 billion baht.
Measure 2: Principal payment holiday for 1 year, with monthly interest payments. After 1 year, customers can request an extension of the repayment period for up to an additional 10 years. 60,134 accounts participated with a loan amount of 74.124 billion baht.
Measure 3: Principal payment holiday for 6 months, with interest reduced to 3.90% per annum and monthly interest payments. 28,998 accounts participated with a loan amount of 27.913 billion baht.
Measure 4: Interest reduced to 3.90% per annum with monthly interest payments for 6 months for customers under default interest rates or in legal status. 16,928 accounts participated with a loan amount of 15.719 billion baht.
Measure 5: Principal and interest payment holiday for 4 months for customers with loan amounts not exceeding 3 million baht and monthly incomes not exceeding 35,000 baht. The bank will waive interest for customers who comply with the conditions of the measure upon the end of the loan period. 217,589 accounts participated with a loan amount of 193.735 billion baht.
Measure 6: Principal payment holiday for 4 months, with interest reduced to 1.00% per annum for medical and public health personnel, including those working in health agencies and hospitals. 7,588 accounts participated with a loan amount of 10.600 billion baht.
Measure 7: Principal and interest payment holiday for 6 months for flat loan customers and housing project development loans (Pre Finance). 494 accounts participated with a loan amount of 2.979 billion baht.
Measure 8: Principal and interest payment holiday for 3 months for customers who previously registered for measures 1, 2, 3, 4, and 6. 38,555 accounts participated with a loan amount of 43.792 billion baht.

“Currently, the bank continues to allow customers with loan amounts not exceeding 3 million baht and affected by COVID-19 to register for Measure 1, which includes a 3-month principal payment holiday and monthly interest payments, until June 30, 2020.

Customers who have previously registered for measures 1, 2, 3, 4, and 6 can also switch to a 3-month principal and interest payment holiday by registering for Measure 8 until June 28, 2020, which can be done through the GHB ALL application.

Additionally, GHB is preparing to automatically extend the assistance measures for customers still affected until October 31, 2020, with further details to be announced,” Mr. Kamolphop stated. To support the economic recovery following the easing of the COVID-19 outbreak, the bank's board has approved the 'GHB Sharing Kindness, We Won't Abandon You' project through two measures in finance and CSR, including the 'GHB We Won't Abandon You' housing loan product (20 billion baht) for family members of individuals eligible for the government's 5,000 baht relief program (3 months) or family members of GHB customers who registered for assistance measures for those affected by the COVID-19 outbreak, including the 8 measures under the 'GHB Helping Thais Build the Nation' project. Borrowers will receive a fixed interest rate of 1.99% per annum for the first 2 years, 3.75% in the 3rd year, MRR-2% in the 4th year, and from the 5th year until the end of the loan term, the interest rate for welfare customers will be MRR-1.00% per annum, and for general retail customers, it will be MRR-0.75% per annum (currently, GHB's MRR is 6.150% per annum).

The loan is intended for purchasing (covering both new and second-hand houses), building, extending, renovating, and purchasing related equipment or facilities for residential purposes along with the main loan objectives (buying, building, extending, and renovating).

The loan amount is capped at 3 million baht per collateral, with waived application fees, special rates for collateral appraisal, and a maximum repayment period of 40 years. Applications can be submitted from June 1 to December 30, 2020. “The current low-interest rates present a great opportunity for those looking to own a home. GHB has set the interest rate at just 1.99% per annum to directly alleviate the repayment burden on customers. For instance, a loan of 1 million baht will only require a monthly payment of 3,300 baht for the first 2 years.

Furthermore, to increase the loan amount available to the public and enhance opportunities for home ownership, GHB has raised the debt service ratio (DSR) for retail customers to a maximum of 50% of net monthly income.

This project covers family members of those receiving the 5,000 baht relief, currently exceeding 15 million individuals, and families of GHB customers who registered for COVID-19 assistance measures, totaling over 400,000 individuals. Therefore, it is believed that the GHB We Won't Abandon You housing project will support the recovery of the real estate sector and the Thai economy more rapidly,” Mr. Kamolphop stated.

Meanwhile, GHB's CSR measures will be conducted under the concept of “Not Just a Duty, But a Concern” with the establishment of the “GHB Food and Supplies Sharing Project, We Won't Abandon You.”

The objective is to elevate communities, foster a culture of sharing happiness, and alleviate suffering by enabling Thais to help and care for one another through the establishment of “GHB Houses” for food and supplies to be shared and consumed by those in distress and affected by COVID-19.

These will be set up at over 200 GHB branch locations nationwide by June 2020, and activities will be organized to allow local communities and nearby students to participate in the project. Previously, the bank initiated the “Small Powers to Great Powers by GHB” project by producing 1,000,000 mask straps, with the involvement of bank executives, GHB staff, partner agencies, elderly or disabled individuals under the care of the Ministry of Social Development and Human Security, and elderly community members supported by the bank.

This initiative took place from May 15 to June 15, 2020, to provide these straps to medical and public health personnel, as well as those serving the public, to alleviate injuries caused by prolonged mask straps during their duties.