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Nov. 6--KTB AND NHA JOIN MORTGAGE SCHEME: Krung Thai Bank has agreed to extend up to 500 million baht in mortgage loans to customers of the National Housing Authority under an agreement signed yesterday.
Interest rates will be fixed at 4 percent for the first year, 4.5 percent for the second year and 5 percent for the third year, with subsequent rates floating based on minimum lending rates.
Krung Thai Bank will lend up to 85 percent of the value of the home, with terms of up to 30 years and guarantees offered by the NHA. The programme will offer the rates until the end of the year only to NHA customers for its new project at Ramkhamhaeng.
Buyers of the Ramkhamhaeng project will purchase only the building, with land title still maintained with the Religious Affairs Department.
Because the project is on land owned by the department, banks have been wary of offering mortgages, with some customers forced to pay interest rates as high as 12-13 percent to the NHA.
The KTB programme would help homebuyers refinance their obligations and reduce their costs, said Suchart Jaovisidha, the deputy finance minister.
BBL LOAN GROWTH FORECAST AT 2-3 PERCENT: Bangkok Bank says it expects loan growth next year of 2-3 percent , with a focus on consumer and small business credit.