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Published on April 4, 2008

However, they must have loans for first-home purchases only, and their monthly salary must not exceed Bt15,000.

To be eligible, customers must already be subject to the bank's floating interest rate. Their outstanding loans must also not exceed Bt600,000.

GHB president Khan Prachuabmoh yesterday said the refinancing programme was part of a Bt10-billion scheme, approved by the Cabinet on Tuesday, to help low-income earners cope with higher living expenses and inflation.

A bond issue worth Bt10 billion is planned, with indicative interest rates of 4.25 per cent and 4.5-4.6 per cent for seven- and 10-year bonds, respectively.

Having their loans refinanced, the clients would be charged less than the current 7.5 per cent, Khan said as the new rate would be equivalent to the bonds' coupon rates.

"We will not add on an administration fee or other charges, which is normally 1.5 per cent of the loan extension," he added.

On the bank's mobilisation of Bt10 billion in new capital, he said the Finance Ministry might approve gradually increasing that to Bt2 billion to Bt3 billion a year.

The Nation