KBank offers free collateral appraisal service and discount for mortgage registration fee to boost new lending.

Responding to government policy, KASIKORNBANK has introduced a new assistance package to reduce loan application costs for all SME customers who borrow 1 to 5 million Baht, offering free collateral appraisal service and a 25-percent discount for mortgage registration fee. As for borrowers under the special soft loan program who are granted loans within this year, they are allowed to start repayment in April 2016. These measures have been implemented in an effort to boost new lending.

According to Mr. Patchara Samalapa, KBank Executive Vice President, the government-initiated soft loan program has enjoyed keen interest from SME operators. At least 1,800 SME customers have applied for 15-billion-Baht loans via KBank, a high number compared to loan applications during a normal period. Most loan applicants have been businesses aiming to borrow 1 to 5 million Baht. KBank, therefore, has introduced an additional assistance measure to help reduce their loan application costs, particularly those fees which they are required to pay by law, while other fees related to the credit application procedure and risk for the soft and normal loan programs are charged as usual. This KBank’s SME assistance measure compliments the overdraft loan rate reduction and a grace period for principal payment, which have been offered since early this year.

Under this new scheme, the Bank waives the entire collateral appraisal fee and offers a 25-percent discount for the mortgage registration fee which borrowers are required to pay. Meanwhile, those who apply for the soft loan program with KBank are provided a six-month grace period for principal payment; they are allowed to start repayment in April 2016. To be eligible for the program, SME businesses must obtain approved credit limits within December 30.

Mr. Patchara added that KBank remains committed to supporting SME customers in accordance with the “K SME Full Support for SMEs” slogan. The SME loans granted under the soft loan program are expected to account for 80 percent of new SME loans to be extended in the fourth quarter of this year. With this new measure, for which KBank has budgeted 50 million Baht, the Bank aims to respond to the government’s latest announcement of mortgage registration fee reduction for homebuyers; and hopes to aid customers by cutting loan application costs. Starting today, interested SMEs can submit their applications at any KBank branch, contact one of the Bank’s Relationship Managers, or call the K-Biz Contact Center at Tel. 02-888-8822.

As for drawdown of the soft loan program, KBank is under a process to verify customer eligibility, and will submit the request to the Government Savings Bank for approval within the end of October.