GHB confident of meeting target of approving 240bn baht in loans in 2025

The Government Housing Bank (GHB) remains optimistic about achieving its target of approving 240 billion baht in housing loans by the end of 2025, despite concerns over a potential economic slowdown, according to the bank’s managing director.

Strong Progress in First Half of the Year

GHB Managing Director Kamolpop Virapala revealed that the bank had already approved 80 billion baht in loans as of the end of May—accounting for 33% of its annual target. This represents a 30.75% increase compared to the same period last year.

Earthquake Impact Minimal on Property Transfers

Kamolpop also noted that despite a recent earthquake in Myanmar, which was felt in Bangkok, the transfer of ownership for condominiums financed by GHB remained unaffected. In fact, condominium ownership transfers under GHB loan agreements rose by 7.7% in the first quarter compared to the same period last year.

Government-Backed Loan Schemes to Drive Growth

The Finance Ministry has instructed GHB to expand lending under several key programmes aimed at stimulating the property sector and broader economy. These include:

• Home Renovation Loans and Home Renovation Plus Loans with a combined budget of 10 billion baht
• Premier Home Loans totalling 3 billion baht
• Pre-Finance Premium Loans for real estate developers in 27 provinces
• Senior Citizen Loan Programmes with six tailored schemes for borrowers aged 60 to 80, allowing home mortgage terms of up to 70 years

Government and BoT Measures Support Loan Uptake

Kamolpop expressed confidence that the government’s real estate stimulus policies—including reducing transfer and mortgage registration fees to just 0.01% for properties priced under 7 million baht—would further drive loan approvals. Additionally, the Bank of Thailand’s easing of loan-to-value (LTV) measures is expected to facilitate easier loan approvals for homebuyers.

Non-Performing Loans Projected to Stay Low

Despite plans to increase lending significantly, GHB forecasts that its non-performing loans (NPLs) will not exceed 5.13% by year-end—an improvement compared to last year.

11 Proactive Measures to Prevent NPLs

To maintain portfolio quality, Kamolpop stated that the bank has implemented 11 measures designed to prevent borrowers from becoming NPLs. These efforts have helped the majority of clients avoid entering the “You Fight, We Help” debt restructuring programme. Currently, about 330,000 GHB customers are enrolled in this initiative.

Tailored Support for Vulnerable Borrowers

Among the 11 strategies is the Debt Relief Programme (DC3) aimed at “Special Mention Loan” debtors—financially vulnerable borrowers at risk of default. Under this scheme:

• No interest is charged for the first six months
• Borrowers pay just 1,000 baht per month during this period
• A 1.9% interest rate is applied from months 7 to 9, with instalments increasing by 100 baht monthly
• From months 10 to 12, a 3.9% interest rate applies, with a further 100 baht added to monthly instalments

Kamolpop concluded that these comprehensive measures reflect GHB’s commitment to both supporting homeownership and maintaining financial discipline in uncertain economic conditions.