Lots Of Condo Owners Mortgaging Their Units To Legalized Loan Sharks Known As “Kai Fak”
Source: Thailand Condo News Oct 10, 2019
Due to economic hardships and the bad economy in Thailand, and despite whatever is being said, local banks are not helping out with any kinds of loans in truth, and man Thai owners are these days turning to so called legalized loan sharks known as “Kai Fak” in which is becoming a worrying trend.
Most of these “Kai Fak” businesses are owned by politicians, top government officials and senior men in uniform and they prey on people’s hardships and desperations.
Some of these “Kai Fak:” businesses will only give you 40% of the value of your property and on top of it, they charge processing fees that can range from Bt 50k to 100k and then the annual interests is between 9 to 10 percent. They will also deduct a year’s payments in advance and what is left is not much for the desperate Thais.
It’s a legalized form and also there are special contracts which have to be submitted at the land departments.
In one condo project in lardphrao, the juristic office was saying that up to 15 percent of the units have been mortgaged this way!
Despite so called initiatives by certain agencies, SMEs and also small businesses are having no access to informal loans at various banks and the mismanaged economy is taking a toll on the common people.