Many people dream of a house they can design themselves, without being limited by project layouts, choosing their own location, and arranging rooms according to their lifestyle. But when asked, "How do I get a loan?", many are still confused because the process of getting a loan to buy land and build a house is quite different from buying a ready-made house.
Proview Living has summarized all the steps from Krungthai Bank's loan information in an easy-to-understand way. After reading this, you'll know exactly what to prepare and where to start.
Why borrow for "land + construction" together, not separately?
A fact many people don't know is that most banks, including Krungthai, rarely approve loans for purchasing only bare land. This is because bare land does not generate regular income, so banks perceive it as higher risk.
However, if you apply for a loan for "purchasing land and constructing a house at the same time," the chances of approval significantly increase. This is because banks view the built structure as adding value to the property and making it more clearly assessable.
Preliminary Loan Information (Krungthai Bank)
| Item | Details |
|---|---|
| Maximum Loan Amount | 100% of the appraised value of land and construction (depending on borrower's conditions) |
| Effective Interest Rate | Approximately 5.18–5.36% per annum (throughout the contract period) |
| Special Promotion | Fixed interest rate for the first 3 years for certain customer groups |
| Repayment Period | Up to 40 years |
| Loan Disbursement | Disbursed in installments according to construction progress, not as a lump sum |
Step-by-step process for a land and construction loan
- Step 1 — Choose land and thoroughly check it first
Before applying for a loan, ensure that the land you're interested in can actually be built on. Check that it has no encumbrances, is not in a forest reserve or controlled area, and that the title deed is correct and ready for transfer. If you're unsure, ProView Living can help with an initial check before you decide.
- Step 2 — Prepare blueprints and a quotation from a contractor
Banks require blueprints of the house and a quotation from a reputable contractor. Some banks specify that the contractor must be a member of the Thai Home Builder Association. Choosing a contractor with a proven track record will help expedite the approval process.
- Step 3 — Gather all documents before submission
Documents to prepare include a copy of the land title deed, house blueprints with a construction permit, a quotation from the contractor, ID card and house registration, proof of income (salary slips or 6 months of bank statements), and a land purchase agreement.
- Step 4 — Submit the loan application and await appraisal
Once all documents are complete, the bank will send an appraiser to evaluate the land and review the blueprints. They will then consider the loan based on the borrower's repayment ability.
- Step 5 — Disburse the loan in installments according to construction progress
The loan amount will not be transferred as a lump sum. Instead, the bank will disburse it in installments as the work progresses, for example, the first installment when foundation work begins, the next when the structure is complete, and so on. This method helps control the contractor and prevents problems with unfinished work.
Documents to prepare: a complete list
- Copy of the land title deed (Nor Sor 4 or Nor Sor 3 Kor)
- Certified house blueprints with a construction permit (Or. 1)
- Quotation from the contractor, including work details
- Copy of ID card and house registration of the borrower and co-borrower
- 3 months of salary slips or a salary certificate
- 6 months of bank statements
- Land purchase agreement (if applicable)
3 common mistakes when applying for a home construction loan
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Incomplete blueprints: Blueprints must be certified by a licensed engineer or architect and a construction permit (Or. 1) must be applied for first. Many people skip this step and only discover problems when applying for the loan.
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Choosing a contractor without due diligence: Some banks have specific standards for contractors. Choosing a contractor with no track record or who is not a member of an association may delay approval or lead to rejection.
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Overestimating the loan amount relative to the actual land and construction value: Banks will approve based on the appraisal value, not the desired price. Therefore, it's essential to know the appraised value of the land in that area beforehand to plan for the difference that needs to be covered with your own funds.
How Proview Living can help
If you're looking for land in Surat Thani to build a house, or need advice on the loan application process and choosing a location, Proview Living's team is ready to provide consultation from the very beginning. This includes checking title deeds, appraising land values, recommending local contractors, and coordinating with financial institutions to ensure the smoothest possible process.
📞 Call: 095-659-2656, 0843353225
LINE OA: @proviewliving | https://lin.ee/cYcA6O3
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