Banks tighten loan conditions as virus crisis deepens

[webfact]

Banks tighten loan conditions as virus crisis deepens

By THE NATION

 

 

Commercial banks are tightening their loan conditions as Covid-19 continues to take a severe toll on the economy.

 

Kiatnakin Bank said it is focusing more on customers’ capacity to make repayments, and was getting stricter in issuing all kinds of loans, particularly small ones.

 

The bank’s president Philip Chen Chong Tan said down payment for a car loan had been increased from 5 per cent to 10 per cent, adding that stricter screening of customers’ information and income was in place.

 

Kiatnakin Bank has also cut availability of loans for freelancers, though issuing criteria remain the same for salaried workers.

 

Likewise, the Bank of Ayudhya (BAY) is being more careful in issuing loans to both old and new customers. Old customers faced new limits on extending their credit line while new customers would find it harder to obtain loans, said Thakorn Piyapan, head of Krungsri Consumer.

 

Krungsri Consumer is also considering raising the salary threshold for loan applicants to Bt20,000 per month. Currently, customers need to earn at least Bt12,00 per month to obtain a personal loan and Bt15,000 to receive a credit card.

 

However, due to numerous conditions it would not be easy to change the criteria, he said.

 

At Siam Commercial Bank, president Apiphan Charoenanusorn said it had become more cautious about issuing loans to customers without collateral.

 

She added that fewer applicants were managing to obtain loans, since their incomes had dropped amid the crisis while the bank’s criteria remained unchanged.

 

Source: https://www.nationthailand.com/news/30392191

 

-- © Copyright The Nation Thailand 2020-07-31

 

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[Proboscis]

Which only goes to prove that both Robert Frost and Mart Twain were right, when they said that a bank is like a man who gives you an umbrella when the weather is fine but demands it back when it starts to rain.

[geriatrickid]

7 minutes ago, Proboscis said:

Which only goes to prove that both Robert Frost and Mart Twain were right, when they said that a bank is like a man who gives you an umbrella when the weather is fine but demands it back when it starts to rain.

Maybe so, but the banks have a responsibility to protect the  deposits of those who have entrusted their money to the bank. The depositors expect to be able to  access their money, not lose it on bad loans. Where do you think the banks get their money? How do you  think they make the revenue to pay the interest on deposits and to cover their operating costs?

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[digger70]

12 hours ago, webfact said:

Banks tighten loan conditions as virus crisis deepens

Yep Protecting Our Money, Not a bad thing.

Bad for the poor that want to borrow a few bucks. More Business for the Greedy Loon Sharks.

Now's a good time to set them up and put them out of Business.

[Leaver]

On 7/31/2020 at 2:54 PM, digger70 said:

Yep Protecting Our Money, Not a bad thing.

Don't you mean, protecting the bank's position with YOUR money?  

 

Guess what happens if the bank gets it wrong? 

 

Edited August 1, 2020 by Leaver

[digger70]

12 hours ago, Leaver said:

On 7/31/2020 at 2:54 PM, digger70 said:

Yep Protecting Our Money, Not a bad thing.

Don't you mean, protecting the bank's position with YOUR money?  

 

Guess what happens if the bank gets it wrong? 

Isn't that the same thing ? If they don't protect our money they can't protect themselves? 

[Leaver]

6 hours ago, digger70 said:

Isn't that the same thing ? If they don't protect our money they can't protect themselves? 

Do you know where a "depositor" is on the creditor list?  ????