Concerns are amplifying over the risks of a reduction in the ceiling lending rate for consumer loans covering credit cards, personal loans, leasing and title loans, which are directly regulated by the Bank of Thailand. Besides a direct impact on the banking sector, non-bank companies will undeniably experience a similar, if not more severe, impact. The new rates for revolving loans and instalment loans will be 25%, and auto title loans will carry a maximum rate of 24%. Krungthai Card Plc (KTC) charges a loan rate lower than the ceiling rate; around 25% for personal loans and 15% for credit cards. However, the impact on Srisawad Corporation Plc (SAWAD) will be greater as its current loan rate is much higher than peers.

Source: Bangkok Post July 06, 2020 23:26 UTC