Rejection rates for home loans at Thailand’s KrungThai Bank stood at 15 percent during the first two months of the year, up from 13-14 percent in the same period last year.
Apichard Detpreechar, Senior Vice President for housing loan products at Krungthai Bank (KTB), told The Bangkok Post that the major reason why applicants were failing to get approval for home loans was that many were trapped in automotive financing contracts.
He said: "When a housing unit is ready to transfer, these homebuyers cannot afford the payments for the units they have chosen because they are obliged to pay for the cars they have purchased last year under the first time car buyer scheme.”
The bank reported it has granted loans worth more than THB12 billion during January and February, of which a quarter were for condominium units.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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