TIDLOR stresses new hire purchase interest ceiling has no impact on core business and is confident its Q3 vehicle title loan business exceeded target
Following the Office of the Consumer Protection Board (OCPB)’s new draft regulation to set the interest rate ceiling for hire purchase (not over 23% for motorcycles, 10% for new cars, and 15% for used cars), Ngern Tid Lor Public Company Limited, or TIDLOR, reiterates that the draft does not affect the company’s core business as it currently has only a small portfolio of hire purchase loans.
TIDLOR also expressed confidence that the vehicle title loan business in the third quarter of 2022 grew beyond target, thanks to business expansion strategy and overall economic recovery.
Mr. Piyasak Ukritnukun, Managing Director, Ngern Tid Lor Public Company Limited, revealed, “We are confident that the OCPB regulation that makes hire purchase loan a controlled business with an interest rate ceiling will not affect our core business because our main revenue comes from secured vehicle title loan as we continue to focus on expanding the car registration loan portfolio.”
As for the overall business operation in the third quarter, car registration loan business is expected to have exceeded target due to strategies to expand the business, including: innovation of “TIDLOR Card” that facilitates customers who have been approved for loans in withdrawing cash within the approved limit at more than 50,000 ATMs of leading commercial banks nationwide 24 hours a day; continuous branch expansion, and; a strategy to expand credit portfolios to help consumers access funding sources for business or increased liquidity.
We are confident that we will be able to grow our vehicle title loan portfolio by 23-28% this year, as targeted, and have plans to cope with rising interest rates and enhance capital potential of the business,” added Mr. Piyasak. “In September, we offered a new series of debentures worth 6,500 million baht with a fixed interest rate to institutional and high net worth investors, which received a good response. As such, the company is able to control the costs of interest rare in the long term.”