Thai institutional group MBK PLC is now offering financing to foreigners on freehold condominiums through its subsidiary MBK Guarantee Ltd.
This appears to be an extremely notable development in Thailand, where previously financing was nearly impossible to obtain for foreigners.
Loans from THB2 million to THB20 million (US$63,431-634,313) are being offered with monthly payments from 2-10 years for all foreigners – including non-residents. Interest is set at a minimum lending rate (MLR) of Thanachart plus 2% (roughly 8.375 per cent floating), and there is an option for a balloon payment at the end of term of 50 per cent.
The company says no income or work permit is required to obtain a loan, but the property must be in prime locations of Bangkok, Hua Hin, Cha Am, Pattaya, or Samui, according to Sakchai Suthipipat Vice President, Investment Department, MBK PLC and Head of Credit Department, MBK Guarantee Ltd.