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Zero-interest home loans are the main draw for visitors to the 2012 Money Expo at Impact Muang Thong Thani.
Visitors throng the opening day of the Money Expo at Impact MuangThong Thani, where ninemonth interest-free mortgages are a draw.
The fair began yesterday and runs for four days. No-interest mortgages are available at several booths, with rival firms competing to offer the longest period at zero interest.
As part of a promotion, Kasikornbank (KBank) has extended its zero-rate period to the first 12 months, up from the usual first nine months.
Krung Thai Bank, Thanachart Bank and Government Savings Bank pitch zero interest for nine months, while Siam Commercial Bank (SCB) and the Government Housing Bank allow six months.
Bank of Ayudhya is pitching three months interest-free, and Bangkok Bank gives a 0.9% interest rate for the first year of its mortgages.
After the zero-rate period, each bank will charge at different rates. SCB has 10 packages and KBank seven options for customers.
Pikun Srimahunt, an SCB executive vice-president, said the zero-rate offerings would probably disappear in the second half, yielding to fixed rates between 1% and 1.5% for the first year.
Rising rates would be in line with higher financial costs for banks, partly due to the Bank of Thailand's new 0.47% levy on commercial bank deposits.
Meanwhile, narrow-margin mortgage loans have become highly competitive.
"Though the country's policy rate is expected to remain steady, higher costs are pressuring rates for mortgage loans," said Mrs Pikun. "The rate increases will depend on market competition as well."
SCB, the country's third-largest bank by assets, ranks No.1 in housing loans. It aims to get 10 billion baht of its full-year target of 80 billion baht at the expo.
Chatchai Payuhanaveechai, an executive vice-president of KBank, sees zero-interest housing loans persisting in the market under strong competition, though the no-rate period will be shortened to 3-6 months.
KBank, the No.2 housing lender, aims for 5,500 home-loan applications at the expo to extend credit of 11 billion baht, said Mr Chatchai.
Visitors throng the opening day of the Money Expo at Impact MuangThong Thani, where ninemonth interest-free mortgages are a draw.
The fair began yesterday and runs for four days. No-interest mortgages are available at several booths, with rival firms competing to offer the longest period at zero interest.
As part of a promotion, Kasikornbank (KBank) has extended its zero-rate period to the first 12 months, up from the usual first nine months.
Krung Thai Bank, Thanachart Bank and Government Savings Bank pitch zero interest for nine months, while Siam Commercial Bank (SCB) and the Government Housing Bank allow six months.
Bank of Ayudhya is pitching three months interest-free, and Bangkok Bank gives a 0.9% interest rate for the first year of its mortgages.
After the zero-rate period, each bank will charge at different rates. SCB has 10 packages and KBank seven options for customers.
Pikun Srimahunt, an SCB executive vice-president, said the zero-rate offerings would probably disappear in the second half, yielding to fixed rates between 1% and 1.5% for the first year.
Rising rates would be in line with higher financial costs for banks, partly due to the Bank of Thailand's new 0.47% levy on commercial bank deposits.
Meanwhile, narrow-margin mortgage loans have become highly competitive.
"Though the country's policy rate is expected to remain steady, higher costs are pressuring rates for mortgage loans," said Mrs Pikun. "The rate increases will depend on market competition as well."
SCB, the country's third-largest bank by assets, ranks No.1 in housing loans. It aims to get 10 billion baht of its full-year target of 80 billion baht at the expo.
Chatchai Payuhanaveechai, an executive vice-president of KBank, sees zero-interest housing loans persisting in the market under strong competition, though the no-rate period will be shortened to 3-6 months.
KBank, the No.2 housing lender, aims for 5,500 home-loan applications at the expo to extend credit of 11 billion baht, said Mr Chatchai.
