GH Bank and TCG Launch 23 Billion Baht Property Loan Guarantee
Government Housing Bank and the SME Credit Guarantee Corporation have partnered on a 23 billion baht 'Credit Plus' program to guarantee property development loans of up to 100 million baht each for ten years. The initiative aims to help developers who lack adequate collateral access financing for projects such as low-rise homes, condos, rental flats, and homestays. Officials expect the scheme to improve liquidity for real estate operators and stimulate related construction, materials, and employment sectors.
Government Housing Bank (GH Bank) has signed a cooperation agreement with the Small and Medium Enterprise Credit Guarantee Corporation (TCG) to introduce a 'Credit Plus' guarantee facility worth 23 billion baht. The scheme provides guarantees of up to 100 million baht per borrower for a maximum of 10 years, targeting property developers lacking sufficient collateral. It covers low-rise housing, condominiums, rental flats, rental homes, and homestays. GH Bank will assess loans under its own criteria before forwarding them to TCG for guarantee approval, easing collateral constraints and boosting lending confidence while managing credit risk. The move is expected to improve liquidity for real estate operators and have a knock-on effect on construction, building materials, employment, and housing options for the public. TCG's Director and General Manager, Sittikorn Direksunthorn, said the corporation has prepared the Credit Plus project with a total guarantee ceiling of 23,000 million baht, a guarantee fee starting at 2% per year, and a maximum guarantee period of 10 years to support access to capital and stimulate the real estate sector amid economic volatility.
