
Kiatnakin Phatra Bank (KKP) expects flat mortgage growth this year under its selective lending strategy, aiming to keep non-performing loans (NPLs) at their existing level.
According to Pattarapong Raktabutr, head of the consumer finance group at KKP, a holding company of Kiatnakin Bank, KKP targets housing loan growth of 5-6 billion baht this year.
However, the bank projects flat growth in outstanding mortgages in 2025, he said.
Due to sluggish economic growth, high household debt, and a slowdown in the property market, the bank is focusing on selective loan expansion to keep the NPL ratio for housing loans at 1.5% by year-end.
As of March, total outstanding housing loans tallied 57.3 billion baht, a 0.7% decline year-to-date. Mortgage NPLs remained unchanged at 1.5% compared with the end of 2024.
Mr Pattarapong said the bank's primary market consists of upper-income homebuyers, with average monthly incomes of 90,000-100,000 baht and minimum home purchase prices of 5 million baht per unit.
This segment not only has strong purchasing power, but also demonstrates sound financial discipline.
By focusing on quality borrowers, the bank has maintained a housing loan approval rate of around 60%, despite the market downturn.
In addition, many mortgage customers pay more than the monthly instalment required and often make pre-payments to reduce debt faster, he said.
"Around 40% of our home loan customers typically pay more than the required monthly amount," he said.
To retain this quality customer base amid rising competition in both new and refinancing home loan markets, KKP launched a new mortgage feature called KKP Home Flexi, designed for borrowers with strong repayment records.
The feature offers a ready-to-use credit line to existing KKP home loan customers who have repaid at least 20% of their property's value.
This credit line is accessible via the KKP Mobile app, with an interest rate starting at 5.925% per year and a maximum credit limit of 2 million baht.
Mr Pattarapong said the credit line is designed for customers with strong repayment histories, especially those who consistently pay more than the required instalment or make pre-payments.
The credit line offers them greater financial flexibility, allowing access to funds for emergencies or other purposes without needing to apply for a new loan.