Ngern Tid lor Public Company Limited (TIDLOR) has ensured it will not be affected by the new regula-tion from the Office of Consumer Protection Board (OCPB) that puts a ceiling of 15% on annual interest rates for hire-purchase agreements on vehicles, including personal cars, motorcycles, and tractors and other agricultural machinery, with the company’s credit limit for new customers at 0.5%.
Ngern Tid lor also revealed strong turnover for Quarter 3 as, from September, the demand for credit and vehicle insurance gradually returned to normalcy. This will allow the company to achieve its annual operation goals.
Meanwhile, Ngern Tid lor’s 0% interest insurance package has been well-received by the public as the Thai government has made a decision to reopen the country, resulting in an increase in vehicle use. The company expects its further expansion of branches to go well after the successful establishment of 184 sites in the first nine months of 2021.
Piyasak Ukritnukun, Managing Director of Ngern Tid lor, revealed that the OCPB’s decision to issue the updated regulations on hire-purchase agreements included regulated businesses with the highest ceil-ing rate of interest (15% annually), along with prohibition on the collection of any remaining debt if the holder withdraws from the hire-purchase contract by returning the vehicle.
This does not affect the company’s operation and turnover, as the company has limited the issuing of new credit loans for personal cars, motorcycles, tractors and agricultural machinery to a maximum 0.5%.
Overall operation has been satisfactory with consistent growth and efficient management, specifically due to a reduction in operating costs after listing on the SET. This was confirmed by a rise in Ngern Tid lor’s company credit and non-subordinated bond credit without security on Tris Rating’s, moving from A- to A with stable inclination.
Meanwhile, the tendency for vehicle registration pledges has improved with the lifting of lockdown in October and announcement of reopening the country at the beginning of November. The government’s decision is expected to elevate the economic circumstances of the country overall but especially for tourism and other services industries, which will boost the confidence of entrepreneurs in other industries. Specifically, it will increase demand for credit, and allow more liquidity for revolving funds and other types of investments as a majority of Ngern Tid lor’s customers are individual entre-preneurs.
The insurance broker business has also seen an improvement since the beginning of October, as the company has come out with a package featuring 0% instalments for up to 10 months, expanded from the initial 6 months. This helps to reduce the financial burden on customers and allow them to have extra money available to put into their business.
Overall, feedback has been positive and most clients show interest in purchasing vehicle insurance. The fact that the government will continue to gradually ease restrictions and reopen the country sends promising signals for economic activity and ensures an increase in vehicle usage for commuting and work, another crucial factor.
“Ngern Tid lor is planning to end the last quarter of the year with expansion of new branches into areas with great business potential. We believe that our strength in technology will improve our service po-tential and customer access to credit and loans. By the end of this year, we expect to have more than new 200 branches, with a total of almost 1,300 branches nationwide,” Piyasak concluded.