Siam Commercial retains strict requirement on personal loans

Minimum monthly income of $452 is still required by lender for personal loans and credit cards.

Siam Commercial Bank Executive vice-president Rungruang Sukkirdkijpiboon said the bank would maintain its focus on the upper end of the population even as a number of other banks have recently relaxed their lending terms.

According to a report in Bangkok Post, some banks have recently cut back their minimum salary requirements for personal loans to just 10,000 baht ($301) per month. Non-bank consumer finance companies offer even easier terms, with some requiring salaries of just 4,000 to 5,000 baht ($120-$151) per month to qualify for a loan.

"A monthly minimum income of 15,000 baht ($452) for personal loans is a reasonable level for any economic environment. The rate is appropriate based on our expertise and should help to control bad debts as well," Mr Rungruang said.

The bank's non-performing personal loan rate is 3-4 percent of the segment's portfolio of 10 billion baht, lower than the market rate of 5-6 percent. SCB wants to expand consumer loans by 30-40 billion baht this year, with an interest rate of 20-24 percent depending on credit lines, lending period and loan package.