SCB offers financial advice to help clients access loans
Siam Commercial Bank has ramped up its advisory role, providing financial solutions to customers to reduce the loan-rejection rate and improve financial discipline amid economic uncertainty and high household debt.
Many people, especially low-income earners and operators of small enterprises, have had trouble servicing their debts. Banks are unable to lend to people who already have high financial burdens. However, SCB believes it can help them access loans if they are offered the right financial solutions.
Therefore, the bank has launched a “Never Say No” campaign for its “SCB My Home, My Cash” product, said Pikun Srimahunt, first executive vice president and head of SCB’s mortgage business division.
She said “Never Say No” did not mean the bank would approve loans for every applicant, but it aims to ease clients’ concerns and boost their confidence when applying for financial solutions.
“SCB My Home, My Cash” provides personal loans after accepting collateral in the form of residential property such as houses, townhouses, condominium units, or plots of land. The bank offers credit lines of up to Bt10 million to each borrower and repayment periods of up to 30 years.
Loan demand under the My Home, My Cash programme is largely from small enterprises and white-collar workers as they require credit for improving cash flow and for fixing up residences. However, many small enterprises do not yet have the confidence to go to the banks, turning instead to loan sharks.
“We have to increase their confidence and assure them they can access funds quickly with affordable interest rates through this campaign,” Pikun said.
SCB My Home, My Cash charges interest of 1 per cent per month, lower than the rates charged outside the banking system, she said.
In the first nine months, new lending under My Home, My Cash amounted to Bt14 billion. Pikun said that as SCB acts as a financial adviser to clients before they apply for a loan, new lending under this programme would reach this year’s target of Bt20 billion.
Each year, SCB projects new loans from the My Home, My Cash programme of Bt20 billion. Outstanding loans stand at Bt40 billion as borrowers in this programme have repaid their debts quickly, she said.
