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Abstract:
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This study aims to examine factors influencing the use of housing loan services and to understand loan use behavior of the bank clients in Ban Pracharat Housing Loans Project implemented by the Government Savings Bank Chiang Mai Region 3. The needed information was collected through questionnaire from totally 306 individuals who registered with the GSB CM Region 3 for housing loan application in this project. The analysis was performed based on the results of descriptive statistics, Likert scale rating of importance of different marketing mix factors, and t-test for the difference between two groups namely loan applicants who received loan approval and those who did not receive loan approval regarding their opinion about relative importance of marketing mix factors.
The study found that 119 individuals or 38.89 % of all those who registered for loan application were granted the loan approval. The majority of those who received loan approval can be described as female, married, 43 years old on the average, with bachelor’s degree education, running grocery shop or general food shop as occupation, and earning averagely 39,700 baht income per month. The most important factor influencing their decision to seek housing loan from the GSB’s Ban Pracharat Project was found to be personnel for the reasons that the GSB workers had knowledge and capability in providing information about this housing loans and they had service mind as well as good human relation. The second most important factor was product because this specific loan enables one having no house of his/her own to become a home owner and also it is earmarked for low income earners. Most of the loan receivers applied for loans to buy detached house on 65 square wah area. On the average, they got a loan limit of 850,000 baht, for 15 years repayment period, and with averagely 8,650 baht per month loan repayment installment.
Totally 187 individuals or 61.11 % of all those registered for housing loan application in this project did not get loan approval. Most individuals in this group can be characterized as female, 43 years old on the average, single, with bachelor’s degree education, employed as civil servant, and earning averagely 30,750 baht monthly income. The most important factor for them to apply for housing loan in Ban Pracharat Project appeared to be product for the reasons that this specific loan can enable one who has no house of his/her own to become a home owner and that it is earmarked for low income earners. The next most important factor was distribution because GSB has branches operating in the neighborhood of loan applicants’ residence or work place and also has branches that offer loan services in various locations nationwide. However, this study also found that most of those who did not get loan approval actually cancelled their loan application themselves because the GSB could not find houses that fitted the needs of the potential bank clients within the loan limits set by the government policy.
Keywords: Ban Pracharat Housing Loans Project
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