Auto refinance loans surge in first half
Overall auto refinance loans showed strong growth in the first six months of this year, in line with people's higher demand of liquidity during the prolonged Covid-19 pandemic.
For the first six months of 2021, overall auto refinance loan portfolio stood at 355.93 billion baht, rising 13% year-on-year.
Demand for loan products increased significantly because people wanted more liquidity to cope with the pandemic's impact and also for planning personal finance in line with economic circumstances, said Kittiya Srisanit, head of Krungsri Auto Group, an automotive finance unit under Bank of Ayudhya (BAY), under Krungsri brand.
Krungsri Auto offers a car refinance loan service under the brand name Krungsri Car for Cash and booked auto refinance loan growth at 3% a month on average during January to September.
As of September, total outstanding loans of Krungsri Car for Cash stood at 77.40 billion baht with a total customer base of 287,000, covering cars, big bikes and motorcycles.
Given the pandemic's impact, Krungsri Auto has been helping customers with debt restructuring using several methods. It has also assisted them with financial planning in line with their income and debt burden.
Mrs Kittiya said customers' financial behaviour has changed during the outbreak and economic uncertainty. Most do not require the full amount of their credit line offering by the bank.
Krungsri Auto yesterday launched a new auto refinance loan, called Car for Cash Prompt Chai revolving loan product. It offers auto refinance loans to car owners without requiring ownership transfer and preparing a back-up credit line to customers in case of an emergency as well.
Mrs Kittiya said the product also marks Krungsri Auto's first loan which can be withdrawn via a Line application, allowing instant access any time and anywhere. The move is also in line with consumers inceasingly embracing the digital platform.
For the first nine months of this year, Krungsri Auto offered Car for Cash loans via online channels worth a total of 3.6 billion baht, rising 111% year-on-year.