Bangkok--20 Oct--KASIKORNBANK
KASIKORNBANK, in cooperation with Secondary Mortgage Corporation (SMC), has launched a housing loan program with four fixed-rate packages up to four years. Interest rate is as low as 2.99 percent, and loan term is up to 30 years. The loan scheme is specifically aimed at new customers with monthly income of at least 10,000 Baht. The Bank, in the initial stage, aims to lend around 500 million Baht under this loan project.
Dr. Prasarn Trairatvorakul, President, KASIKORNBANK, said in a recent interview that the Bank and Secondary Mortgage Corporation (SMC) have jointly launched a fixed-rate home loan program to provide greater choices to prospective homebuyers amid the rising interest rate environment. Four loan packages based on different fixed rates are, i.e., 2.99 percent, p.a. in the first year; 4.99 percent, p.a. for the first two years; 5.59 percent, p.a., for the first three years and 6.09 percent, p.a. for the first four years. MLR minus 0.25 percent will be charged thereafter until the end of loan contract. Loan term is up to 30 years or not exceeding 70 years when combined with borrower’s age.
The loan program will target new clients with monthly income of 10,000 Baht who want to purchase a housing unit among residential projects in greater Bangkok. Loan limit starts at 500,000 Baht.
Homebuyers of participating property projects can get loan limit up to 95 percent of home price. General clients will be granted loan limit up to 90 percent of home price, but not exceeding 90 percent of appraised price.
Dr. Prasarn Trairatvorakul added that the mortgage loan scheme would provide more alternatives to homebuyers in consideration of their incomes and the rising interest rate environment. The Bank aims to expand their business to new clients in the medium-income bracket — the largest high-potential market — in order to provide other services to this customer group. Customers will also be able to access home loans with a fixed rate of as long as four years. Up to now, the Bank’s fixed-rate mortgage loan term has been no longer than three years.
Dr. Duangporn Arpasin, the President of Secondary Mortgage Corporation, said that the home loan program will allow customers to access long-term fixed-rate home financing more easily thanks to the wide network of KBank branches. KASIKORNBANK will serve as a primary market to provide the mortgage service via more than 700 KBank branches nationwide, conduct loan approvals under the criteria established by both the Bank and SMC, and conduct mortgage registration. SMC, meanwhile, will act as a secondary market to buy the loans for further management.
SMC believes that the project will offer an interesting option to prospective homebuyers who want to access long-term fixed-rate mortgage loans, especially those with monthly income of 10,000 Baht — a customer base still largely untapped by KBank. The loan program will help customers control their budget for efficient liquidity management, and minimize the risk of higher interest rates.
The Bank and SMC hope to extend around 500 million Baht in this type of loan in the initial stage. Applications are accepted at any KBank branch across the country. For more information, please contact the K Contact Center at 0 2888 8888.