Siam Commercial Bank is offering a fixed-rate for home loans to attract new customers and help ease financial costs for homebuyers when interest rates are on the upward trend, says executive vice-president Rungruang Sukkirdkijpiboon.
The bank is offering fixed-rate home loans at 1% interest for the first year and allows customers to pay monthly instalments of at least 1,000 baht for every 1 million baht of the total loan amount in the first year.
The loan programme is made availble to 1,000 residential projects from 30 developers.
Generally, the average home loan per customer is about two million baht with a monthly installment of 13,000-14,000 baht. The low monthly instalment under the campaign would help ease the financial burden for clients considering they would have to pay not only the home transfer fee, but also for decoration and other expense in the first year.
“We expect about 70% of the bank’s home loan applicants will select this package due to its attractive conditions. Currently, the bank’s approval rate for consumer loan products is about 80% of total applications, and the promotional campaign will substantially speed up its loan growth this year,” said Mr Rungruang.
SCB, the country’s fourth-largest bank in terms of assets, plans to book 65 billion baht in new mortgage lending by year-end, higher than its full-year target of 55-60 billion baht.
For the first eight months of the year, it expects to book new loans of 50 billion baht. The strong expansion in consumer finance is supported mainly by the government’s tax incentives for the property sector, as well as the bank’s promotional campaigns to boost loan demand continually.
Despite the growth, the bank can control non-performing loans at a satisfactory level of less than 2% of total debt outstanding. Its mortgage loan portfolio is about 250 billion baht, or 62% of its total retail outstanding debts, and it expects to increase the portfolio to 260-270 billion baht by year-end.
Source : bangkokpost.com
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