Applying for a bank loan does need not to be an arduous, time-consuming task any more, but it helps to get the basics right so you can rest assured you are getting the best deal in terms of interest rates and payments you can afford.

Most banks have common features such as 24-hour cash service, an interest rate that is applicable after taking out the loan and flexibility of repayment.

It also helps to know that the regulatory body, in this case the Bank Of Thailand, has set the ceiling interest on personal loans at 28 per cent per year.

Individual lenders have come up with innovative measures to attract customers.

The United Overseas Bank (Thai) for instance calls its scheme UOB Cash Plus. The unique thing about this is the promotional rate of 11.99 per cent for the first six-months.

Thereafter the rate, excluding fees, is 20 to 26 per cent a year, depending on customer qualifications and their ability to service their debt in the bank's opinion.

The bank's calculation formula is based on the loan size, multiplied by the number of days, multiplied by the interest rate and divided by 365 for the number of days in a year.

For instance, if you borrow Bt100,000 at 20 per cent, 23 per cent, 24 per cent and 26 per cent, you will pay Bt1,644, Bt1,890, Bt1,973 and Bt2,137 interest respectively for 30 days.

The Singaporean bank's conditions include a minimum repayment of 5 per cent of the outstanding loan up to Bt500.

The maximum line of credit is Bt1 million.Borrowers must pay an annual fee of Bt400.

Applicants must earn at least Bt15,000 a month to qualify for one of the bank's loans.

Citibank, the leading consumer lender, offers the very popular Ready Credit.

Customers who apply for Ready Credit between today and August 31 will get a triple benefit, with a rate of 0.99 per cent for the first four months, no annual fee and a free barbecue worth Bt2,200 to celebrate.

After the promotion period ends, the bank will charge interest at 27-28 per cent, depending on the type of account.

Citibank's borrowers can choose to withdraw cash from ATMs or get a lump sum transferred directly to their account.

Customers can also choose monthly repayment at a minimum of Bt200 or 4 per cent of outstanding balance, or an equal monthly installment up to 36 months.

The minimum income required to qualify for a Read Credit loan is Bt10,000 a month.

Krungthai Card Plc's KTC Cash Revolve requires applicants to earn a minimum monthly salary of Bt7,000.

The non-bank company offers minimum repayment terms of only 3 per cent of the loan per month or Bt300.

Customers get one reward point for every Bt25 of cash withdrawal and are not charged an initial fee, annual fee or cash-withdrawal fee.

Krunthai Card's KTC Cash Revolve will lend up to four times an applicant's monthly income, which is more than any other bank.

AIG Retail Bank is offering AIG Just Cash with two alternatives and a special promotion. Customers may choose either an extra rate of 0.4 per cent a month for the first two months or a money transfer. The latter brings with it a Bt2,390 MP3 player or a Bt500 dining voucher at Oishi restaurant.

The new bank requires borrowers to have a minimum monthly income of Bt10,000, and minimum repayment is 5 per cent or Bt500.

Obviously there are plenty of enticements in the market, but the final choice should come down to not what gifts and gimmicks the banks offer, but which bank offer  the best rate based on your credit history.

Somruedi Banchongduang

The Nation