Bangkok--5 Mar--KASIKORNBANK
KASIKORNBANK and Secondary Mortgage Corporation (SMC) continue their collaboration with a purchase agreement of a 10-billion-Baht housing loan portfolio, offering long-term fixed and floating rates for borrowers to choose from. Other benefits from the K Home Smiles Club include a complete advisory service for housing matters to purchasers of new builds, older, and refinanced houses.
KASIKORNBANK President Mr. Predee Daochai said KBank and SMC have agreed to execute a purchase agreement for a 10-billion-Baht loan portfolio in 2014, continuing the cooperation between the two parties. Earlier, SMC purchased KBank’s housing loans under this program to the tune of 5.4 billion Baht.
Customers participating in this program will be offered four special housing loan rates, fixed and floating: a fixed rate for the first two years at 4 percent; a fixed rate for the first three years at 4.75 percent; a floating rate for the first two years at MLR-3.00 percent; and a floating rate for the first three years at MLR-2.25 percent. MLR-0.25 percent will be applied for all types of rates after these terms end.
Program participants will be served similarly with general K-Home Loan customers along with other privileges from K Home Smiles Club including an extensive advisory service, comprising a personal manager on home matters, personal secretary service, emergency road assistance, special activities from KBank, as well as special discounts and benefits on products related to housing and the family from more than 200 business partners.
From March 6 to June 30, the Bank also offers a marketing campaign promoting the collaboration by offering LINE luggage, limited edition, worth up to 7,990 Baht for customers applying for loans and registering mortgages under this program. Interested applicants can apply for the service at any KBank branch or contact K-Contact Center by calling 0 2888 8888.
Mr. Predee added that the housing loan purchase agreement is in line with the government’s promotion to support overall economy and housing loan industry and benefit financial institutions, borrowers and institutional investors which have invested in SMC bonds. Over the past year, KBank also provided advisory service for mortgage-backed securities (MBS) issuance worth 2.05 billion Baht.
According to KBank’s survey through first-hand communication and a close monitoring of consumers, demand for housing remains high particularly in major regional cities. KBank plans to extend at least 52 billion Baht in housing loans this year. The cooperation between KBank and SMC will facilitate residential assets in broad areas overall for the public.
SMC President Ms. Pornnipa Hachaiyaphum said the SMC is delighted to complete the memorandum of understanding between KBank and SMC to purchase the 10-billion-Baht housing loan portfolio, which benefits a range of parties including a loan expansion to the general public to access to housing loan funding, the growing property market in tandem with current demand, and overall enhancement in Thai financial, capital and secondary mortgage markets.
KBank-SMC cooperation has been an exemplary model, assessed for housing loan purchases, financial advisory services, and the 2.05-billion-Baht MBS underwriting. In late 2013, MBS was 1.5 times oversubscribed, which placed emphasis on SMC’s role as a state-owned agency that complements financial systems and increases circulation of housing loans with securitization. This largely benefits financial institutions, capital market and the overall quality of life for the general public, which is the main objective of SMC.