Four leading commercial banks have agreed to cut their lending rates by between 25-50 points effective as of Tuesday May 16.
Bangkok Bank will cut MOR lending rate for major good customers and MRR lending rate for small good customers by 25 points to 7.125 percent in order to cut costs of the small and medium enterprises (SMEs).
The bank's vice president Mr Suwan Taensathit said the Bangkok Bank intended to support SMEs to increase their capability so they can compete more effectively.
He explained that the improved capability of SMEs would help drive the economy, which is in line with the government's policy.
Krung Thai Bank agreed to slash the MRR lending rate for small but good customers by 50 points to 7.12 percent. The bank's managing director Payong Srivanich said the bank had allocated a budget of 6 billion baht for a new programme to help SMEs.
Another 4 billion baht budget was allocated to help SMEs which have sale target exceeding 100 million baht or have credit line of more than 20 million baht. There are three lending packages, with interest rate being charged at 4-4.5 percent and repayment period of up to seven years.
Siam Commercial Bank decided to lower its lending rate by 25 points to 6.025 percent for MLR and 6.025 percent, making the MLR and MOR rates the lowest.
Kasikorn Bank also agreed to cut its MRR lending rate by 50 points to 6.25 percent, 7.12 percent respectively for SMEs and individuals who have good records.
Source: Thai Public Broadcasting Service (Thai PBS)