Government Housing Bank (GH Bank) has introduced measures covering regular customers, NPL clients, and new borrowers seeking loans to repair or build new homes. Applications are accepted at all GH Bank branches starting today.
Government Housing Bank (GH Bank) has issued seven aid measures for customers affected by heavy rains and flash floods in multiple areas. These include up to a 6-month loan moratorium at 0% interest, low-interest home repair loans, and expedited fire insurance claim payments. Customers can apply to participate at any GH Bank branch nationwide starting today.
Dr. Mahattana Ampornpisit, Managing Director of GH Bank, stated that a strong low-pressure system from Cambodia caused heavy rains from 25 to 27 September in the lower northeastern region, eastern region, central region, as well as Bangkok and its vicinity, resulting in flash floods in several provinces. The bank has therefore launched measures to alleviate hardship for customers whose homes were damaged, with details as follows.
Measure 1: Current customers whose homes used as collateral were damaged can suspend loan repayments for 3 months at 0% interest with no installment payments required. If the home is severely damaged and uninhabitable, the moratorium can extend to 6 months under the same conditions. After the moratorium, the original interest rate will resume.
These customers can also borrow an additional amount up to 300,000 baht per person for home repairs, repayable over a maximum of 5 years. The first 100,000 baht carries a fixed interest rate of 1% per year for 3 years; the remaining 200,000 baht is charged at 1.99% per year. No additional mortgage registration at the land office is required.
Measure 2: Both existing and new customers can borrow up to 2 million baht per collateral to repair or rebuild homes. For the first 3 months, interest is 0% with no installment payments. Months 4-24 are charged at 2.00% per year. In the third year, the rate is MRR minus 3.30% per year; in the fourth year, MRR minus 2.40% per year. From the fifth year until loan maturity, retail customers pay MRR minus 0.50% per year, and welfare customers pay MRR minus 1.00% per year. (GH Bank's current MRR is 6.145% per year.)
For a 1 million baht loan over 40 years, GH Bank estimates starting monthly payments at 3,100 baht. Appraisal fees (1,900–2,800 baht) and mortgage registration fees are waived. Loans for purchasing home equipment or facilities are charged interest at MRR.
Measure 3: NPL customers whose homes used as collateral were damaged can restructure debt for up to 1 year. The first 6 months carry 0% interest with no installment payments. Months 7-18 are charged at 1.00% interest per year, with monthly payments at least covering the monthly interest.
Measure 4: NPL customers whose income is affected can restructure debt for up to 1 year. The first 6 months carry 0% interest with monthly payments of 1,000 baht. Months 7-12 are charged at 1.00% interest per year, with monthly payments covering the monthly interest plus an additional 100 baht.
After the restructuring period ends, both measures will revert to the original interest rates applicable.
Measure 5: Regular and NPL customers who have died or become permanently disabled may have co-borrowers or heirs continue repayments at 0.01% interest per year for the remaining loan period.
Measure 6: Regular and NPL customers whose homes are completely damaged beyond repair will have their building debt forgiven by the bank and continue repaying only the remaining land portion.
Both measures will be considered on a case-by-case basis.
Measure 7: Customers with fire insurance covering natural disasters through the bank’s insurance provider will receive expedited (Fast Track) claim payments. Damage can be reported with photographs, and compensation will be paid based on actual damage up to 20,000 baht. Policies effective from 1 November 2019 include additional natural disaster coverage up to 30,000 baht per year based on actual damage, subject to policy terms.
According to GH Bank, loan applications must be submitted, approved, and legally processed by 31 December, with limited funds available. For more details, contact G H BANK Call Center at 026459000 or visit the GH Bank Facebook page.