Chip Mong Bank begins offering first loan service
Chip Mong Commercial Bank Plc began offering its first loan service on Wednesday, as it hopped onto the property sector by signing a partnership agreement with its sister company Chip Mong Land to provide loans for home buyers featuring more attractive terms.
Chip Mong Commercial Bank senior vice-president Vong Sokhal said on Wednesday that after the bank was launched in January this year, some 4,000 depositors opened savings accounts with it to the tune of $2 million.
With the number of depositors in place, Sokhal said the move comes at the right time and is the proper channel for the bank to give loans to home buyers from developers such as Chip Mong Land.
Through the partnership, Sokhal said people who purchased a house from Chip Mong Land with a subdivided title can pay a loan interest rate at 3.99 per cent for the first year and 7.7 per cent from the second year onwards.
“Through this collaboration, home buyers can get loans from us from the early stages of a purchase – having just a buy-sell agreement – at a 10 per cent annual interest rate."
“Later, when a subdivided title is granted and house ownership is secured by a hard title, the interest rate will be dropped to 7.7 per cent.”
Chip Mong Land president Leang Henry said on Wednesday that the favourable loan terms and conditions provided by Chip Mong Commercial Bank to home buyers applied to all Chip Mong Land projects, which currently number eight.
“By establishing this partnership with Chip Mong bank today, I believe that we will receive a lot of support from clients as it becomes easier for home buyers to obtain a loan with special interest rates,” he said.