KTC personal loans to hit border region

Even though provincial markets account for 60 per cent of KTC’s customer base, personal loans grew by only single digits last year, while Bangkok and nearby provinces posted double-digit growth, said Sudaporn Janwatanagool, executive vice president for personal loans.
As well, given that this customer base covers more than 70 provinces, it is relatively small even though it accounts for 60 per cent. That means KTC has a lot of room to grow, she said, offering personal loans to these people.
This year, KTC projects 146,000 new customers, and outstanding loans are expected to expand by 15 per cent to Bt18.8 billion. Its current customer base comprises 600,000 accounts.
Last year, KTC’s personal loans grew by 10.1 per cent, while the overall market grew by 4.6 per cent. The personal-loan industry this year is expected to grow by 7-10 per cent, but KTC wants to improve that performance, and its customers upcountry are key to that goal, Sudaporn said.
The company will also appeal to first-jobbers by allowing cash withdrawals through its online channel.
Earlier, KTC aggressively captured credit-card customers in provincial markets through Krungthai Bank branches. However, Sudaporn said direct sales were a better approach for these markets, as branch employees have many duties, and fee income from personal loans is lower than from insurance products.
“Our target consumers in the provinces are the same as in Bangkok, workers who have monthly income of Bt10,000 and above,” she said.
The company believes its approval rate for personal loans will be 30 per cent as it has to screen potential customers to avoid non-performing loans, the key to success in this segment, she added.