Flood aid

Wichit Chaitrong
The Nation December 23, 2011 2:13 pm

Deputy Finance Minister Viroon Tejapaibul said today that from the focus on first-time home buyers, the scheme would seek to lend to those in search of home repair loans. The loans could amount to Bt5 billion, out of total Bt20 billion to be extended by the Government Housing Bank.

Under the scheme, the Bt5 billion portion would be extended to cover home repair including furniture purchases. Borrowers will be entitled to zero rate for the first three years. Each borrow can borrow as much as Bt100,000. Government Housing Bank yesterday just announced a pact with Home Products Centre, to lend home repair loans to those buying furniture at the retail chain.

Viroon noted that the measure will be submitted to the Cabinet for approval next week.

Due to severe floods, fewer than expected first-time home buyers have applied for mortgage scheme despite the three-year zero rate.

Viroon also asked finance officials gathering in a seminar in Chiang Mai to consider whether to adjust other populist schemes, such as rice pledging, first-car and SML fund to villages in order to make them more efficient.

For example, the Bank for Agriculture and Agricultural Cooperatives should not demand the immediate settlement of existing debts from farmers, immediately after they receive funds from the rice pledging scheme. These farmers should be able to use all available funds in improving their farms.