KTC sees Q2 boost to personal loan service
Krungthai Card (KTC) predicts that consumer spending via its personal loan service in the current quarter will rise to Bt9,000 per month per head from Bt8,000 as people need cash for several reasons, including the opening of new school semester, increased
Sudaporn Janwatanagool, KTC executive vice president for personal loans, said yesterday that consumers would next month have to pay an additional 30 satang per unit for electricity after the Energy Regulatory Commission increases the fuel tariff (Ft). Fares on public buses will also go up because of higher fuel prices, while parents have to pay tuition fees for the opening of new semester. All this will enhance customers’ use of personal loans to ease their burden, she said.
Customers have asked KTC to increase their credit lines, to which the company readily agrees for those with good credit records. At present, KTC approves credit lines of up to Bt38,000 per customer.
The company has two types of personal loans, KTC Cash Revolve and KTC Cash. This year it will focus more on former, which allows customers to withdraw cash from automated teller machines and reinstates the amount of their credit line when they repay the money.
Cash Revolve accounts for 93 per cent of KTC’s personal-loan portfolio. The company this year will rely on Krung Thai Bank branches as the key channels to acquire new customers. The branches will help screen customers to reduce the risk of debt defaults.
KTC this year aims for 102,000 new customers, with receivables rising to Bt13 billion from Bt12.46 billion last year. KTB is expected to refer 35 per cent of the new customers.
Sudaporn said the bright outlook for the economy would help KTC achieve its target after missing out on both new accounts and receivables because of last year’s flood crisis.
KTC opened 93,000 new accounts last year, lower than target, while its receivables of Bt12.63 billion also fell short.
