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BOT cuts interest rates on credit cards and loans by 2-4%

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BOT cuts interest rates on credit cards and loans by 2-4% 

 

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The Bank of Thailand (BOT) has ordered commercial banks and financial institutions to cut the higher interest rates, charged to customers with credit card balances and personal loans, by 2-4%, effective today (Saturday), in an effort to help ease the burden on small debtors affected by COVID-19 pandemic.

 

The central bank cited the fact that the economy has not yet recovered and that the debt moratorium, previously introduced, is due to expire.

 

Well-informed banking sources say that the new top rate on unpaid card balances will now be 16% per annum, down from 18%, whereas the interest rate on personal loans will be 25% per annum, down from 28%, with the exception of vehicle hire purchase (lease), which will now be capped at 24%, also down from 28%.

 

Full story: https://www.thaipbsworld.com/bot-cuts-interest-rates-on-credit-cards-and-loans-by-2-4-from-today/

 

thaipbs.jpg

-- © Copyright Thai PBS 2020-08-02
 
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6 hours ago, rooster59 said:

Well-informed banking sources say that the new top rate on unpaid card balances will now be 16% per annum, down from 18%, whereas the interest rate on personal loans will be 25% per annum, down from 28%, with the exception of vehicle hire purchase (lease), which will now be capped at 24%, also down from 28%.

Credit card fees throughout the entire world are ridiculous %'s. Mind you, most people would probably use 12-18 months 0% transfer on debts deal offers

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Good start.  Now cut interest rates on bonds to reduce speculation on the Baht.  They could even save the economy—if the so desired...

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All this very recent rhetoric about NPL Loans, first from several Commercial Banks, and now from the BOT is starting to sound just a tad worrying.

With Loans running at 80% of GDP, any large NPL rises are going to have a huge effect on the Economy and in particular the banking Sector.

I notice Vehicle Loans have been reduced by the Maximum 4% to be capped at 24%, another sign that the Motor Industry is not doing at all well, and that this is to try and stimulate Sales.

Maybe Teflon Thailand is now starting to become a sticky place.

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I think I will start spending my next year's 800k visa money I have in the bank now just incase

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"whereas the interest rate on personal loans will be 25% per annum, down from 28%, with the exception of vehicle hire purchase (lease), which will now be capped at 24%, also down from 28%."

 

Are they talking about loan sharks? So high interest rates? 

 

 

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Sounds like they are desperate to have people repay.  

 

I wonder at what percent of nation wide default rates do the Thai banks start to wobble?

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2 hours ago, Isaan sailor said:

Looks like Thai economy will tank—no surprise.

Yes, but I am sure everyone's 800k in a Thai bank, visa money, will be safe.   🤣

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14 hours ago, RichardColeman said:

Credit card fees throughout the entire world are ridiculous %'s. Mind you, most people would probably use 12-18 months 0% transfer on debts deal offers

Pay the credit off every month and there's some quite good benefits to be had.  

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