What do Cash loans (สินเชื่อเงินสด) mean when you apply for a cash card? It means that a Thai citizen can borrow a specified amount from a company. A cash card is issued to draw cash against an existing line of credit, up to a ceiling amount. Once the debt has been fully paid, the allowed withdrawable amount will be restored to the original balance.
The Bank of Thailand has tightened its rules applying to credit cards and personal loans in order to reduce overspending and household debts. The stricter regulations on unsecured loans aim to address the issues of the financially-vulnerable Thai households. According to Ruchukorn Siriyodhin, deputy governor that oversees the stability of financial institutions at the Central Bank of Thailand, young Thais have a high percentage of household debt, indebtedness and loan default.
The tightened regulations are aimed at striking a balance between accessibility to credit services and mindfulness on debt servicing. The maximum interest rates charged by credit card companies will be reduced to 18% from the current 20%. The new rates will apply for both new and existing cardholders to minimize the costs of acquiring a credit card.
For the new cardholder, the credit line will be limited at 1.5 times the monthly income per card for Thais who are earning from 15,000 baht to less than 30,000 baht per month. Those that are earning between 30,000 baht and less than 50,000 baht will be allowed 3 times the monthly income. Those earning 50,000 baht and more will be allowed a credit line that is 5 times their income per month.
If there is an emergency, the cardholder will be allowed additional credit that is 5 times the monthly income. Cardholders who already have 4 credit cards on the average can expect issuers to be more cautious about the issuance of additional cards.
It is very easy to obtain 5 times the amount of revenue through Cash loans (สินเชื่อเงินสด) with fair interest rates. The interest rate is further reduced depending on the cash that is used. If you use the cash card wisely, it will be very convenient to pay the monthly payment fees without affecting your financial stability.