As rates rise now's the time for personal loans

Recently, big banks started raising their interest rates, while other banks have followed suit, marking the first round of rate hikes in over a year.

People who want personal loans should take this opportunity to look for the best deal.

However, a personal loan is a clean loan without collateral, so it always charges a higher lending rate. Borrowers must carefully choose which is the best. The Nation has surveyed interesting personal loan offers among banks.

 One of the most interesting is BankThai's extra-long personal cash loan, which allows borrowers as long as 84 months of credit maturity.

The bank charges a lending rate between 16 and 28 per cent depending on a credit line, which is equal to five times your salary or a maximum of Bt1.5 million.

You must have at least Bt15,000 in monthly salary with a good record of credit.

Citibank claims that it offers the lowest lending effective rates at 16-22 per cent for employees of 5,000 premium companies, state enterprises, banks, financial institutions and hospitals.

Bt300,000 of approved credit will merit a 16 per cent interest rate; Bt50,000- Bt299,999, 18 per cent; and Bt30,000- Bt49,999, 22 per cent.

General customers will get a higher rate depending on their income: Bt15,000-Bt24,999 of income per month will receive a 26 per cent rate; Bt25,000-Bt49,999, 24 per cent; and more than Bt50,000, 20 per cent. If the customers get more than Bt300,000 of approved credit, they will receive a 16 per cent interest rate.

Standard Chartered Bank (Thai) (SCBT) offers new customers a special rate of 16 per cent for Bt300,000 of approved credit; 20.99 per cent for Bt200,000-Bt299,999; 22.99 per cent for Bt100,000-Bt199,999; and 25.99 per cent for lower than Bt100,000.

But if you are a new customer and also have documents to confirm you own a house valued at least Bt2 million, you will get a better rate. With Bt200,000 of credit line, customers will get 14.99 per cent; with a Bt100,000-Bt199,999 credit line, 16.99 per cent; and with lower than Bt100,000, 18.99 per cent.

KrungthaiCard offers a 15 per cent interest rate but it still charges 8-13 per cent for a credit line fee depending on personal loan type.

United Overseas Bank (Thai) provides two interest rates: 26 per cent to customers whose monthly income is from Bt15,000-Bt24,999;and 25 per cent for those with Bt25,000 or more. It also provides a special interest rate of 9.99 per cent in the first three months to customers with no record of bad credit at the other financial institutions. They will also get credit line approval at three times of income.

Documents required are copies of identification card, house registration, salary payment slip or salary affirmation document, bank accounts in the last three months, and the first page of the bank account to which you would like to transfer the loan.

Applicants must be 20-60 years old, with a minimum salary Bt15,000 and four months of work experience.

Usually, the approval process takes a short period of time, with customers receiving loans within four days.