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Published on January 10, 2008

However, only customers with purchasing orders from about 100 merchants participating in the campaign will qualify.

The merchants include home-decoration shops, wedding organisers and related business providers and healthcare-service providers. The loans will be made by direct transfer from the bank to the merchants.

Interest rates will be about 12-18 per cent per year, depending on the loan amount. Normal personal-loan interest rates at other banks average 24 per cent, while some charge as much as 28 per cent.

Introducing the new product, Standard Chartered said it would focus on customers who really wanted to buy products and avoid those who wanted personal loans to refinance existing debts.

The bank has surveyed customer demand for personal loans and will focus on three groups. The first needs a loan for home decoration or renovation, the second needs money for getting married and honeymoon travel, and the third needs money for healthcare and beauty. The demands differ according to lifestyle, the bank said.

Its new loans will also be available for surgery, dental work and eye treatment.

"The bank's loan campaign is designed to fit with customer demand. However, loan payment differs from other banks," said Yuttachai Teyarachakul, executive vice president for credit-card and personal loans.

To get the loan, customers must show the bank purchase orders from merchants participating in the campaign and from whom they want to buy goods or services.

Once the bank receives a customer's application and provided the loan is approved, the bank will pay for the goods and services directly to the merchants via cashier's cheque.

The loans are available until July 15, and applicants must earn at least Bt15,000.

Yuttachai said the interest rate being offered was the industry's lowest for a consumer-loan product.

Citibank offers a personal-loan product at a minimum rate of 16 per cent, while HSBC recently launched a promotional programme for consumer loans by offering zero interest.

Somruedi Banchongduang

The Nation