Drop seen in demand for household loans this quarter
Demand for household loan is expected to decline in the first quarter of this year in line with the current economic situation that has affected consumers' spending, according to a survey on loan tendency by the Bank of Thailand (BOT),
The survey was conducted among executives of financial institutions, as well as credit card and personal loan businesses under non-bank supervision.
BOT gathered the views of executives of Thai commercial banks, branches of foreign commercial banks, specialised financial institutions and 25 credit card and personal loan companies, covering 98.6 per cent of loan supply in the market.
The survey also revealed that demand for credit card loans was expected to increase as households would still need to manage their financial liquidity.
Moreover, demand for business loans was expected to continue and large business loans would increase, partly due to government projects and business takeovers,
Meanwhile, SME loan demand is supported by the government’s stimulus measures with entrepreneurs able to apply for additional funding from the second quarter onward.
However, credit approval would be stricter.