GHB managing director Chatchai Sirilai said on Monday that the new housing loan formula would base on the concept that those who borrow more will have to pay higher loan rate than those who borrow less.
He pointed out that under the current practice, all borrowers are charged a standard promotion loan for the first three years after which a floating rate will be imposed which, he said, has increased the amounts of instalments to be paid by the borrowers, making many of them unable to fulfill their repayment obligations, thus ending with many of the loans being non-performing.
However, he said new housing loan formula was being consideration and would need the approval of the board before it goes into effect.
GHB’s non-performing loans ending 2016 amounted to 50.8 billion baht and the amount increased another one billion baht at the end of January this year.
The bank’s housing loan this year is expected to increase 5 percent and even more if commercial banks are reluctant to extend housing loans to their clients, said Mr Chatchai.
He went on saying that the bank had tried to provide convenience to its housing loan borrowers by issuing them with electronic cards – yet to be endorsed by the Finance Ministry – so that they can transfer their instalment payments without the need to visit the bank counters to make the payments.