GSB car lending company ready to lend 20 billion baht

People receive financial services at the Seacon Square branch of the Government Savings Bank.

Government Savings Bank (GSB) motorcycle and car title lending joint venture expects to lend about 20 billion baht this year, up 25% from last year, bank chairman said , Vitai Ratanakorn.

The state-owned bank entered the auto title lending business in 2020 by acquiring a 49% stake in Fast Money Co Ltd, which was previously 100% owned by Srisawad Corporation.

GSB’s entry into the arena is aimed at providing loans to increase liquidity to low-income people, in line with government policy. He also wants to reduce the high interest rates for this loan segment.

Currently, annual interest in this segment is around 19%, up from 28% previously.

Over the past year, Fast Money Co Ltd has provided loans worth more than 16 billion baht at an annual interest rate of around 11% to more than 800,000 low-income people.

Auto title loans account for 21% of total loans from non-banks worth 481 billion baht, while personal loans account for 48% and credit card loans for 31%.

GSB recently launched a low-interest loan that does not require collateral, aimed at helping low-income people build up their liquidity.

This decision is in line with government policy to mitigate the prolonged impact of the pandemic on low-income people.

The loan is only available through the bank’s MyMo mobile banking app.

Meanwhile, the Bank for Agriculture and Agricultural Cooperatives plans to focus more this year on supporting environmentally friendly agricultural projects, its chairman Tanaratt Ngamvalairatt said.

Part of this initiative is to issue green bonds totaling 6 billion baht to the private sector to allow companies to participate in supporting these projects.

Jeanetta J. Stewart