TMBThanachart Bank (ttb) anticipates an increase in customer participation in the "You Fight, We Help" debt relief scheme, which is designed to assist households in easing their debt burden amid slower economic growth.
Ttb president Thakorn Piyapan said the bank aims to raise the proportion of eligible participants in the debt relief scheme to 70% of total registrants following an extension to the registration period.
The cabinet recently approved extending the registration deadline from Feb 28 to April 30.
Currently, 12,500 mortgage loan customers are seeking assistance under the debt relief scheme, with about 7,000 clients already participating, accounting for 56% of all qualified customers.
The bank expects the participation ratio to increase to 70% once the registration for the programme ends next month.
According to Mr Thakorn, the bank's qualified clients for the "You Fight, We Help" programme under the auto loan product category tallies 180,000, with 34,000 clients, or 18.8%, currently taking part in the scheme. If all qualified clients were to restructure their debt under the programme's conditions, it would reduce the number of repossessed cars sent to auction yards and help improve used-car prices, he said.
Mr Thakorn said the bank also offers special interest rates under its debt refinance programme for clients with a strong payment history, covering mortgage, auto and personal loans. For housing debt refinancing, the bank offers a fixed interest rate of 3.39% per year from the fourth year onwards throughout the loan term. For car title and personal loans, ttb offers starting interest rates of 13% and 17% per year, respectively.
Under the current regulations, the maximum interest rates for these loan products in the market are set at 24% and 25%, respectively. If clients demonstrate a good debt repayment record, the bank will offer additional special rates and other privileges. The mortgage loan rate is based on the minimum retail rate (MRR) minus 4.215% per annum.
At present, ttb's MRR is quoted at 7.065% per year.
Separately, the bank's chief executive Piti Tantakasem said 58% of mortgage loan customers are taking part in the "You Fight, We Help" programme, while 54% of small and medium-sized enterprises are taking part in the scheme. Some 19% of auto loan clients are participating in the programme and 13% of personal loan customers are taking part in the scheme.
According to Mr Piti, the bank has continued to offer various debt assistance programmes over the past few years. Between 2023 and 2024, the number of mortgage loan clients participating in these programmes increased from 2,000 to 4,900 accounts, auto loan participation rose from 71,000 to 98,000 accounts, and personal loan participation grew from 1,400 to 10,000 accounts.
"The bank's troubled debt restructuring represents roughly 10% of the total loan portfolio, showing an upward trend in line with the weaker economy, reduced consumer debt repayment capacity, and the bank's assistance efforts," said Mr Piti.