SUMMIT CAPITAL SHRUGS OFF NEW LOAN CRITERIA
Summit Capital Leasing said it would not be affected by the Bank of Thailand's new criteria on personal loans, while hoping to retain its base of customers earning a monthly salary of more than Bt50,000 each.
Wichit Phayuhanaveechai, chief executive officer, said that there will be no impact on the company from the central bank's new criteria for new personal loans which is expected to fuel market competition as the company would focus on the high-end market of people making more than Bt50,000 per month.
Anticipating interest-rate competition for personal loans, the company has launched an interest-rate promotion offering 12.99 per cent for the first five months of the repaymemnt loan period, after which a Bt1-million personal loan will bear an interest rate of 19.99 per cent.
The company enjoys a 6 per cent increase in its personal loan portfolio with 1,000 customers eraning an average monthly salary of Bt100,000 or more each. Each customer has on average a personal loan three times his or her monthly income with no defraud.
Wichit said that the loan extension approval of 30 per cent was normal and expected to close the accounting year of 2017 ending March 31, 2018 with an outstanding personal loan of Bt1 billion and low bad debts.
Under the strategy, the company plans to boost the number of leasing contracts for motorcycles to 120,000-140,000 units from the end of this year's estimated number of 100,000 units.
For the first six months of this accounting year, the number jumped by 44 per cent from the last accounting year (ending March 2017) of 80,000 motorcycles.
