Six state banks in Thailand will reduce their lending rates by 0.25% starting May 1, following the Thai Bankers Association’s announcement of a similar cut in the MRR for creditworthy customers. This move will benefit around 18 million bank account customers.
State Banks Follow Suit with Rate Cuts
In response to the Thai Bankers Association’s announcement, six state banks have decided to cut their lending rates for small borrowers by 0.25%, starting from May 1. The Government Savings Bank, Government Housing Bank, SME Development Bank, Export-Import Bank of Thailand, Thai Credit Guarantee Corporation, and Islamic Bank of Thailand are all participating in this rate reduction.
Overall Reduction in Lending Rates
The Export-Import Bank has announced a reduction in its prime rate from 6.60% to 6.35%, following a previous cut of 0.15% on April 18th. This latest reduction means the bank will have lowered its lending rates by a total of 0.40%. Similarly, the Government Housing Bank has reduced its lending rate for creditworthy clients from 6.795% to 6.545%, benefiting around 18 million bank account customers, including those who are financially vulnerable. Additionally, the bank has introduced a new savings account with an attractive interest rate of 1.95% for deposits up to 200,000 baht, aimed at encouraging people to save.
