Rules set for digital personal loans
People who lack regular income and access to financial services will be able to get digital personal loans of up to Bt20,000 under new Bank of Thailand (BOT) rules announced on Thursday.
BOT governor Veerathai Santiprabhob said that digital lenders will use records of utility bill payment, income or online shopping patterns to evaluate borrowers’ debt-payment capacity.
The loan providers must also apply technology for lending and debt collection, and disclose details such as interest rates, penalty rates, service fees and debt obligations.
Each customer can borrow up to Bt20,000 in total but the debt must be repaid within six months. Borrowers can use the loan for any purpose. The combined interest rate, fine and service fee must not exceed 25 per cent annually.
Digital personal loans would give people who lack regular income and collateral access to financial services, according to the central bank.
Digital lenders could propose their services to the BOT, said the bank.
The loans should help soften the economic impact of Covid-19 on the poorest section of the population.
