Worldlease seeks to promote cash-for-motorcycle product
Worldlease is planning to talk with its parent CIMB Bank about using its branches to promote its "2wheels 2cash" product."The cash-for-motorcycle pro-duct will reduce the approval process. The interest rate offered to customers is also lower," |managing director Thaveepol Cha-roenkittikhunpaisal said yesterday.
After one year of testing, the company found that the product was not very popular because sales channels were few in number.
The new product for motorbikes has similar features as the cash-for-car product. However, buyers of motorcycles who want to use 2wheels 2cash have to contact Wolrdlease's branches, unlike those who want to use instalment plans, who can apply for a loan at the motorcycle dealer.
The company has to provide the cash-for- motorcycle service at its branches to control credit quality.
"We hope the product can help borrowers who have no [outstanding] motorcycle loan and need emergency cash. Customers who were extended a motorcycle lease have a loan burden of a maximum three years," he said.
About 20-30 per cent of existing customers are expected to apply for 2wheels 2cash.
The company needs more |sales channels to facilitate loans besides motorcycle dealers and its branches.
Worldlease will talk with the bank about setting up the service and will also ask for approval from the Bank of Thailand. That might take time. It will also have to upgrade the features of 2wheel2cash to make it a cash-for-motorcycle product.
"Lending for new and used motorcycles is more intense," Thaveepol said. "We have to have more channels to reach customers, especially those upcountry. Outstanding loans from 2wheels 2cash are expected to be seen by next year."
For 2013, Worldlease targets its new motorcycle loans to expand 30 per cent from Bt3 billion and its non-performing-loan rate to improve from 4 per cent to 3 |per cent.