Mee Tee Mee Ngern, a Government Savings Bank (GSB) subsidiary, aims to extend land collateral loans worth 10 billion baht next year, says chief executive Isara Wongrung.
The company is a joint venture between GSB, Dhipaya Group Holdings and Bangchak Corporation. It was established with registered capital of 1 billion baht, with GSB owning 49%, Dhipaya 31% and Bangchak 20%.
The company extends loans by using land as collateral. It charges an interest rate of 6.99-8.99% per year in the first year, depending on the risk level of borrowers.
From the second year, it charges the minimum loan rate plus not more than 2.85% per year, which is far lower than the 15% land loan rate in the market, Mr Isara said.
The company charges a borrowing fee of 1% of the total loan value. Mee Tee Mee Ngern believes lending worth 10 billion baht is adequate to provide liquidity to 4,000-5,000 individual and corporate borrowers, he said during the launch of the service yesterday.
Mr Isara said during the initial stage, the company would pilot the loan service in five provinces -- Bangkok, Nonthaburi, Pathum Thani, Samut Sakhon and Samut Prakan -- before spreading nationwide in the middle of next year.
The company also provides a refinancing service to individual borrowers of 300,000 baht up to 10 million baht, and to juristic entities borrowing 300,000 baht up to 50 million baht.
The company will consider maximum lending of 70% of the land appraisal value, he said.
The maximum loan period is five years with a grace period of one year.
The loan does not require a check of borrowers' records at the National Credit Bureau, nor an inspection of income.
There is also no need for a guarantor, said Mr Isara.
He said the company was founded with the objective to ease people's interest burden and to serve entrepreneurs, especially small and medium-sized enterprises, seeking urgent liquidity.
