Tisco Financial Group's microfinance arm, Hi-Way Co, is maintaining its branch network expansion plan for this year, though its business target could be revised in light of the pandemic.
Hi-Way, which provides auto title loans under the brand Somwang Ngern Sang Dai, aims to open 50 more branches nationwide this year, bringing the total to 350 by year-end, said managing director Supachai Boonsiri.
The company needs to monitor economic circumstances after the government eased the lockdown policy before making a decision on revising the full-year business target plan, he said.
Hi-Way delivered 4% loan growth in the first quarter this year, well below the double-digit growth of the past.
"We cannot forecast our economic or business activities for the second half this year because of the pandemic," Mr Supachai said. "Hopefully activities will pick up from the first half, in line with the easing of lockdown measures.
"If the economic situation has not improved by the second half, the company's loan growth could contract for the full year."
Mr Supachai said the company is ready to offer financial assistance in compliance with the second phase of the Bank of Thailand's debt relief measures on a case-by-case basis.
Suspension of debt repayment for both principal and interest is also available.
Regarding the central bank's relief measures to cut the ceiling rate for auto and car title loans from 28% to 24%, he said it would have only a minor effect on the company because it charges customers below the ceiling 28% rate.
Hi-Way charges a monthly interest rate of 0.55% for four-wheel vehicles, 0.66% for trucks with six or more wheels and 1.25% for motorcycles.
Loans for four-wheel vehicles, including passenger cars and pickups, account for 95% of Hi-Way's loans outstanding.
Mr Supachai said customers' repayment capability is weakened as the pandemic wreaks havoc on the economy, but the deterioration level differs depending on borrower segmentation.
Some of the company's borrowers have requested an extension of the debt relief package's expiry deadline, while others continue to service debt as normal, he said.
Hi-Way's core customer segments are white-collar employees, factory workers and self-employed clients, evenly accounting for more than 30% each.