What are current bank lending rates for small business?

[konisaan]

Example: If a Thai person wanted to open a used car dealership with stock of around 4 million Baht, around what lending rate would the bank charge nowadays?

I'm assuming there would be a few percent difference between a secured loan (eg land as security) or an unsecured loan (just the actual cars as security)

Also, would the term of the loan affect the rate?

[rethaier]

Why don't you ask a bank or a car dealer.

[HerbalEd]

Why don't you ask a bank or a car dealer.

Don't try and be so smart here. Keyword being "try." Perhaps he might find such here on tv.com ... or someone who actually has some accurate info to share.

[catman20]

couldn't see the bank leading unsecure loan to a Thai they never pay back

[blackcab]

Example: If a Thai person wanted to open a used car dealership with stock of around 4 million Baht, around what lending rate would the bank charge nowadays?

I'm assuming there would be a few percent difference between a secured loan (eg land as security) or an unsecured loan (just the actual cars as security)

Also, would the term of the loan affect the rate?

It depends on who you are, what your name is and how rich you are.

Banks in Thailand use the MRR (Minimum Retail Rate) + ?% method.

So as an example, Kasikorn are MRR + 5% at the minute for a secured commercial loan. Their MRR is currently 7.87%, making the interest 12.87%.

Discounts are available for good customers that will get them closer to the MRR.

You will not get a commercial loan secured on the vehicles themselves. The vehicles have to be able to be sold, so the bank cannot put a charge against them. As far as the bank is concerned there is nothing stopping you selling all the vehicles, keeping the cash and defaulting. They will require something solid such as a piece of land that they can use as a surety.

Edited July 20, 2015 by blackcab

[blackcab]

It can be if they like you, your idea and your guarantee.