CIMB Thai offers new scheme with incentives via payroll accounts
February 01, 2014 00:00 By Sucheera Pinijparakarn The Na
Programme extends lower-interest loans, wealth and investment products
CIMB Thai has launched a new programme allowing working people to get lower-interest loans via their payroll accounts.
Under the CIMB@Work scheme, the bank projects providing loans of Bt1.2 billion and Bt800 million in deposit and investment products by the end of this year.
Most of the lending will be personal loans, said Sutee Tantana, senior vice president.
He said the bank had set up the programme by visiting each company to offer attractive investments to the top management and special interest rates on lending products to mid- and lower-level employees.
To top executives, the bank will offer wealth products, while middle-management staff will be offered housing and auto loans, and lower-level staff will have access to personal loans and motorcycle financing.
“We have paid strong attention to lower-level employees because we found that they have monthly salaries of Bt8,000 but still take personal loans from non-banks and loan sharks. Under CIMB@Work, we offer our personal loans with lower interest rates than general personal loans in order to help those people pay off their debts to non-banks and loan sharks,” he said.
Under CIMB@Work, the interest rate offered to payroll accounts is 20 per cent per year compared with 28 per cent per year generally. Interest on mortgages will be 25 basis points lower than offered to walk-in customers.
Adisorn Semchaiwong, senior executive vice president for retail banking at CIMB Thai Bank, said that in the first phase, the bank would tap the payroll accounts of companies that are borrowers from the bank before expanding to non-payroll accounts of such companies.
CIMB Thai serves 300-400 companies with a total of 40,000-50,000 payroll accounts and 1,700-1,800 business clients with around 500,000 non-payroll employees.
Adisorn said the bank was focusing on payroll accounts because this category was low risk, as it will collect debt payments from these customers through their payroll accounts.
Moreover, the bank can keep an eye on their financial behaviour, which help support the future cross-selling of products.