By The Nation
Borrowers are allowed to prepay with interest costs reduced after each principal repayment.
“The bank is well aware of the needs of a specific group of customers, which are different from those of customers who make use of the Bank’s Cash Your Car,” said Tirachart Chiracharasporn, executive vice president of auto hire purchase.
“Cash Your Book serves as an alternative for this group, who have cars but need quick cash to improve their short-term liquidity while avoiding high interest charges and long-term obligations. Borrowers are allowed to prepay part or the entire amount of the outstanding principal balance without prepayment penalty or accrued interest.”
Cash Your Book is different from hire-purchase loans in that borrowers are required only to use their car registration book as collateral, but do not have to transfer the book.
As a result, they can still use their car and keep the ownership with the repayment term of up to 60 months.
Since this is a consumer loan and not a hire purchase, no value-added tax will be imposed on instalment payments. The repayment burden is thus alleviated.
The interest rate starts at 12 per cent per annum, with interest costs reduced after each principal repayment. This is lower than the rates charged on general consumer loans.
The bank imposes neither fee on the available credit line nor prepayment penalty.
The target group includes existing customers of Thanachart Bank’s hire-purchase loans and first-car buyers who have fully repaid their loans. The latter group accounts for 30-40 per cent of all first-car buyers.