Financial market/ Financial institutions : Home Loans

Overview

• Home loans are made to private individuals for the purchase of residences. Loan providers include the Thai commercial banks, state-run financial institutions, finance and security companies, and credit foncier companies.

• Among the most important home loan providers are the Thai commercial banks with 54.8 percent of outstanding loan balance, followed by state-run financial institutions with 45.2 percent.

• Overall, competition remains intense in the home loan market. Although financial institutions have adopted much more cautious loan approval policies in order to maintain the quality of their loan portfolio, their marketing strategies include attracting customers with initially low interest rates, such as, for example, no interest for the first six months and increasing in stages over three years.