The Government Housing Bank (GH Bank) is loaning a total of 20 billion baht for pre-financing and mortgages of the elderly of Thailand. The chief of the bank confirmed the approaching deal.
The president of GH Bank, Chatchai Sirilai, said that 50% of the total loan will be designated to pre-financing the residences of the elderly. He added that the bank is already in discussion with the National Housing Authority and the property developers.
Mr Chatchai commented about the project saying, “Next year we will focus on supporting the development of homes for the elderly. GH Bank will provide loans to both property developers and the general public. The loan amount of 20 billion baht has not taken reverse mortgages into account, as the bank can only start offering reverse mortgage services after the law is amended. That issue is currently considered by the Finance Ministry.”
The lending has already began with 1 million baht out of the 20 billion baht already available for those who are taking care of their old parents. Despite this, the lending amount remains marginal because of homeowners who prefer the housing loan package offered on the 63rd anniversary of GH Bank.
The president said that they had set a new 2016 loan target at 170 billion baht. This is realistic goal as the bank has already acquired a total of 151 billion baht in loans as of December 13.
The GH Bank is a financial firm built under the command of the late King Bhumibol Adulyadej on January 9, 1953. King Bhumibol Adulyadej aimed for the bank to support housing finance the Thai people. It used to act solely as a housing developer but today, it is a leading financial institution in the country with collaborative agreements and projects with other branches of the government such as the Social Security Office, the National Housing Authority, and the Government Pension Fund. The GH Bank mostly focuses on housing loan projects such as the ones mentioned in this article.