KBank, KTC run schemes to encourage debt payment
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Lenders are helping consumers practise debt-repayment discipline with programmes that either reduce interest rates or clear the outstanding debts of those who make payments on time.
Kasikornbank executive vice president Chatchai Payuhanaveechai said the bank acknowledged that it should help reduce household debt and promote financial discipline to cash-card holders who keep their balance up to date.
“We have launched a ‘Pay on Time, Get Interest Discount of up to 12 per Cent per Annum’ programme for K-Express Cash customers. Borrowers with no late payments will get a 1-per-cent discount on interest for up to 12 billing cycles, or up to 12 per cent per annum,” he said.
Payments can be made in full or at least 5 per cent of the outstanding balance of the previous month, which must not be less than Bt500. The offer is available until October 31.
K-Express Cash screens customers by accepting only those with monthly incomes of more than Bt20,000.
KBank currently has 800,000 K-Express Cash customers, who this year the bank expects to spend Bt43.5 billion. Cash-card holders in general spend around 40 per cent of their lines of credit.
Sudaporn Janwattanagool, executive vice president for personal loan business of Krungthai Card, said it had extended a campaign that clears off the outstanding debts of well-disciplined customers of KTC Cash Revolve. Customers who join the campaign are required to have outstanding loans of Bt2,000 and to register with KTC.
The campaign has received good feedback, so KTC has extended it in hopes of encouraging personal-loan consumers to exercise good repayment discipline.
In the first three months of this year, outstanding personal loans increased to Bt13.4 billion from Bt12.18 billion as at the end of last year.
