Tuesday, September 29, 2020

GSB to roll out credit card refinance loan

Dec 16. 2019
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By THE NATION

Government Savings Bank (GSB) president Chatchai Payuhanaveechai said last week that the bank is preparing a New Year gift for its clients who wish to refinance their debts on credit cards, cash withdrawal cards and cards issued by non-bank institutes (e.g. Aeon, First Choices).

“We are preparing loans of a maximum of Bt100,000 per person with a 5-year repayment plan and 12-per-cent interest per year, which is lower than the normal rate charged on these cards of 18-20-per-cent annually,” he said. “I will present this campaign to the GSB board meeting on Tuesday (December 17) and hope that it will get the green light before the end of 2019.”

“This loan is in accordance with Finance Minister Uttama Savanayana’s policy to have Bank of Thailand and commercial banks come up with measures to help good borrowers who pay their debts on time,” Chatchai added. “GSB will be the first bank to act on this policy and we expect that the loan will help alleviate the debt burdens of credit cards holders.”

As for the requirement to receive the loan, holders must first close the credit card that they wish to refinance. “In the event they have more than one card, they can keep other cards going.” he said. “This is the main difference between GSB’s loan and Bank of Thailand’s Debt Clinic campaign, which requires participants to stop all their credit cards and bring all their debts into one place before handling them.”

When asked about concerns over borrowers may run up more debts if they still have other cards, Chatchai said that the bank will select only clients with a good record of repayment and who have never missed paying their dues. “Moreover, the NPL from credit card refinancing loans will be separate from NPL of credit card loans, which currently stands at only 2-3 per cent, so this campaign should not mean more risk or burden to the bank,” he added.

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