LifestyleWealth & MoneyThai State Banks Lower Lending Rates to Aid Borrowers

Thai State Banks Lower Lending Rates to Aid Borrowers

In response to the Thai Bankers Association’s recent announcement regarding a reduction in the minimum retail rate (MRR) for creditworthy clients, six state banks have unveiled their plans to follow suit by lowering lending rates for small borrowers. This decision, effective from May 1st, mirrors the 0.25% decrease initiated by the association, aiming to provide relief to borrowers amidst economic challenges.

The six banks involved in this move include the Government Savings Bank, the Government Housing Bank, the SME Development Bank, the Export-Import Bank of Thailand, the Thai Credit Guarantee Corporation, and the Islamic Bank of Thailand. Notably, the Export-Import Bank (EXIM Bank) has specified a reduction in its prime rate from 6.60% to 6.35%, marking a significant adjustment in lending practices.

Rak Vorrakitpokatorn, president of the EXIM Bank, highlighted that this latest rate cut complements a prior 0.15% reduction implemented on April 18th, amounting to an overall reduction of 0.40% in lending rates. Similarly, Kamonphob Veerapala, president of the Government Housing Bank, affirmed that the lending rate for creditworthy clients will be slashed from 6.795% to 6.545%, effective May 1st.

This initiative is poised to benefit approximately 18 million bank account holders, particularly those facing financial vulnerability. In tandem with the lending rate adjustments, the Government Housing Bank has introduced a new savings account, encouraging individuals to cultivate a habit of saving. With a minimum deposit of 500 baht, account holders stand to gain an interest rate of 1.95% on deposits not exceeding 200,000 baht, fostering a culture of financial prudence amidst economic uncertainties.

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