rooster59 Posted August 1, 2020 Share Posted August 1, 2020 BOT cuts interest rates on credit cards and loans by 2-4% 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/ -- © Copyright Thai PBS 2020-08-02 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 1 Link to comment Share on other sites More sharing options...
RichardColeman Posted August 2, 2020 Share Posted August 2, 2020 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 1 Link to comment Share on other sites More sharing options...
Popular Post spidermike007 Posted August 2, 2020 Popular Post Share Posted August 2, 2020 Those are still abusive and ridiculous rates. Considering what the banks are paying for the money they are using. This should be considered a felony. Lock up the bankers! 11 Link to comment Share on other sites More sharing options...
Isaan sailor Posted August 2, 2020 Share Posted August 2, 2020 Good start. Now cut interest rates on bonds to reduce speculation on the Baht. They could even save the economy—if the so desired... 1 Link to comment Share on other sites More sharing options...
Cake Monster Posted August 2, 2020 Share Posted August 2, 2020 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. 2 Link to comment Share on other sites More sharing options...
Knocker33 Posted August 2, 2020 Share Posted August 2, 2020 I think I will start spending my next year's 800k visa money I have in the bank now just incase 1 Link to comment Share on other sites More sharing options...
thaiden1 Posted August 2, 2020 Share Posted August 2, 2020 Would these cuts appy to the likes of Tisco etc? Link to comment Share on other sites More sharing options...
Oldie Posted August 2, 2020 Share Posted August 2, 2020 "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? Link to comment Share on other sites More sharing options...
Leaver Posted August 2, 2020 Share Posted August 2, 2020 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? 1 Link to comment Share on other sites More sharing options...
Isaan sailor Posted August 2, 2020 Share Posted August 2, 2020 Looks like Thai economy will tank—no surprise. Link to comment Share on other sites More sharing options...
Leaver Posted August 2, 2020 Share Posted August 2, 2020 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. ???? Link to comment Share on other sites More sharing options...
torturedsole Posted August 2, 2020 Share Posted August 2, 2020 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. 1 Link to comment Share on other sites More sharing options...
DaftToPutRealName Posted August 10, 2020 Share Posted August 10, 2020 8 minutes ago, RonaldOO said: People would still sign the contract if they're desperate. Money now, worry later. Happens everywhere. Desperation isn't the sole preserve of the poorly educated. People would better educate themselves here In my experience they prefer to be willfully ignorant and the arrogance of being told from a small kid that they're always right leads to an adult that is unable to think objectively about most things, and in particular financial issues. In particular the idea that every investment must return a profit or it's a "loss of face" leads to many of the sticky issues that we are starting to see today. If they cared even a little bit, they could look at entire industries that have sprung up in the west designed to rort credit card offers and move money around efficiently. However, like many who just move back to mae and pae in kanchanaburi when SHTF, leaving both their condo deposit and face-losing notice to the owner in Bangkok, the constant "safety net" means there's little incentive. After all, why work hard today if tomorrow you'll still have a bowl of sticky rice and pork??? Fortunately, great time to be cash rich and debt poor. I must give thanks to the Thai banks for ignoring the foreign finance market, encouraging all expats to avoid added expense! Link to comment Share on other sites More sharing options...
Oliver Holzerfilled Posted August 10, 2020 Share Posted August 10, 2020 (edited) On 8/2/2020 at 2:35 PM, torturedsole said: Pay the credit off every month and there's some quite good benefits to be had. Yes. Such as $7500usd returned to my account after filing chargebacks againt airlines and travel agencies dragging their feet with refunds from coronavirus related flight cancellations. Edited August 10, 2020 by Oliver Holzerfilled Link to comment Share on other sites More sharing options...
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