Thai Housing Bank Pushes Freelancer Loans Despite Debt-Strike Calls

The Government Housing Bank (GHB) has dismissed concerns about online campaigns promoting debt strikes, stating that housing loans are not vulnerable to such movements due to careful vetting of borrowers' repayment capacity before approval. GHB President Mahattana Ampornpisiṭ emphasized that the bank's housing loans are fundamentally different from personal loans, which are at the center of the current debt-strike debate, because housing loans involve thorough assessment of borrowers' ability to repay before approval, ensuring that borrowers genuinely intend to purchase homes. If customers face economic hardship or reduced income and begin to struggle with payments, the bank offers early intervention through debt restructuring, settlement negotiations, extended loan terms, and adjusted installments. The bank is also deploying digital systems, dashboards, and data analytics to monitor credit quality closely and reduce non-performing loan (NPL) risk.

In the first half of 2025, GHB approved 123,149.93 million baht in new lending, a 14.85% increase from the same period last year, representing 49.9% of the full-year target of 246,795 million baht. Housing loans of up to 3 million baht accounted for 58,685 cases, up 7.39%. The bank's NPL ratio stood at 5.54%, with a Coverage Ratio of 150.76% and a BIS Ratio of 15.47%, both exceeding Thai central bank standards and reflecting strong financial health.

Although the real estate sector faces challenges, the bank believes the market has reached its low point and will gradually recover in the second half. The bank maintains its full-year lending target of 246,795 million baht and is expanding credit access for freelancers and self-employed professionals, targeting over 10,000 million baht in loans to this group through Credit Scoring, AI Credit Assessment, and Alternative Data methods. Homes priced below 3 million baht remain the primary market, accounting for over 80% of new lending, with the average loan per borrower declining to 1.07 million baht, reflecting the bank's focus on helping low- and middle-income earners own homes.

The bank is also extending its reduction in transfer fees and mortgage registration fees for another year to stimulate home purchases and support the real estate sector. In addition, GHB is supporting the government's clean energy policy through sustainable lending (Green Loan & ESG), including cool-home loans, Number 5 homes, and Solar Roof loans. Existing customers receive a fixed 1% interest rate for three years, while new customers start at 0.99%, to promote solar power installation, reduce electricity costs, and increase clean energy use in households.