Bangkok Bank responds to BOT’s phase two relief measures to help retail customers affected by the COVID-19

Stocks and Financial Services Press Releases Tuesday July 7, 2020 15:23
Bangkok--7 Jul--Bangkok Bank

Bangkok Bank responds to the BOT’s phase two relief measures to help retail customers affected by the COVID-19 outbreak including credit card customers, personal loan customers under supervision as well as mortgage and home equity loan customers. Initiatives include lowering the interest rate ceiling, extending credit limit and issuing additional minimum payment policies including debt restructuring to help relieve the debtor's burden.

Bangkok Bank Senior Executive Vice President Suvarn Thansathit said that the Bank understands the difficult circumstances people are currently facing, which is why it has launched supportive measures to help retail customers including credit card customers, personal loan customers under supervision as well as mortgage and home equity loan customers by lowering the interest rate ceiling, extending credit limit and issuing additional minimum payment policies such as lowering minimum payment rates, changing term loans, reducing installment payments, postponing payment of installments or principal as well as debt restructuring to alleviate the anxiety of customers in light of the COVID-19 outbreak. This is also in accordance to the BOT’s announcement about phase two relief measures.

Detailed information about the supportive measures are as follows:
1.) Credit card customers General measures

Lower interest rate ceiling of 16% per annum (from 18% per annum), effective from August 1, 2020 onwardsTemporary extension of credit limit from 1.5 times of monthly income to 2 times of monthly income for customers with good payment history and customers whose average monthly income or average monthly cash flow into their deposit account is below 30,000 baht. The measure is effective from August 1, 2020 – December 31, 2021.

For minimum payment measures, customers can register from July 1, 2020 to December 31, 2020.

Maintain 5% minimum installment rates in 2020-2021, increasing to 8% in 2022 and 10% in 2023Extend term loan to 48 months or in accordance with the customer’s debt service capability. Interest rate is not more than 12% per annum. The bank will determine the term in accordance with its debt service capability criteria. The term must not exceed the approved limit, when combined with the original credit balance.Issue additional relief measures for customers affected by the crisis who do not have sufficient income to pay the debt on a case-by-case basis.

2.) Personal loan customers under supervision General measures

Lower interest rate ceiling of 25% per annum, effective from August 1, 2020 onwardsTemporary extension of credit limit from 1.5 times of monthly income to 2 times of monthly income for customers with good payment history and customers whose average monthly income or average monthly cash flow into their deposit account is below 30,000 baht. The measure is effective from August 1, 2020 – December 31, 2021.

For minimum payment measures, customers can register from July 1, 2020 to December 31, 2020.
Revolving loan

Lower minimum payment rate in accordance with debt service capabilityExtend term loan to 48 months or in accordance with the customer’s debt service capability. Interest rate is not more than 22% per annum. The bank will determine the term in accordance with its debt service capability criteria.

Installment loan
Lower installment by at least 30% with lower than 22% interest rate per annum
3.) For mortgage and home equity loan, customers can register from July 1, 2020 – December 31, 2020

Defer payment of principal and interest for three months; orDefer payment of principal (paying interest only) for three months and consider reducing interest for customers on a case-by-case basis; orReduce repayment amount by extending payment termProvide additional supportive measures for home loan and home equity loan customers as per the Bank’s consideration on a case-by-case basis

4.) Debt restructuring

In the case that customers cannot repay an agreed amount in a contract or minimum repayment measure or other measures, the Bank will proceed with debt restructuring for customers by considering repayment ability in order to immediately support and ease burden for customers.

"Bangkok Bank has urgently put in place these measures to assist customers and alleviate their financial issues by focusing on providing assistance to clients affected by the COVID-19 outbreak. Our priority is to help customers before their credit history is impacted by bad debt as it will adversely affect their loan applications in the future," said Mr. Suvarn.

For those who have various types of loan portfolios with Bangkok Bank, they are able to request assistance for all types of loans in accordance with the above conditions. Initially, customers can send their loan request and make a registration online via https://www.bangkokbank.com/COVID19-Update, scan the attached QR Code or visit the Bank’s branches or our business centers from July 1, 2020 to December 31, 2020. Meanwhile, customers who are not severely affected or able to pay loan installments can also apply for loans and make loan repayment as usual.

For more information, please visit www.bangkokbank.com, Bangkok Bank Line Official or call Bualuang Phone 1333 or (66) 0 2645 5555.

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