UPDATE on Loan Interest Rates from 19 Banks

              Recently, as you may know, the committee voted 5 to 2 to reduce the policy interest rate by 0.25% per year from 1.75% to 1.50% per year following the announcement from the Monetary Policy Committee (MPC) meeting on August 7, 2019.

              Naturally, commercial banks must also adjust their interest rates downward. TerraBKK has found that there are currently 19 banks classified as “domestic registered commercial banks”. In addition to the well-known major banks such as Bangkok Bank, Krung Thai Bank, Krungsri Bank, Siam Commercial Bank, and Kasikorn Bank, there are also several smaller banks.

              In terms of “loan interest rates”, they can be divided into three main categories: MRR, MOR, and MLR. TerraBKK will provide an update on the loan interest rates of the 19 commercial banks as follows:

               MRR or Minimum Retail Rate is the interest rate that commercial banks charge prime retail customers, such as personal loans and housing loans. The average MRR loan interest rate of the 19 registered commercial banks is 7.9579% per year, with the lowest rate being offered by Kasikorn Bank at 6.87%.

               MOR or Minimum Overdraft Rate is the interest rate that commercial banks charge prime corporate customers for overdraft facilities. The average MOR of the 19 registered commercial banks is 7.7295% per year, with the lowest MOR currently being offered by Siam Commercial Bank at 6.745% per year.

               MLR or Minimum Loan Rate is the interest rate that commercial banks charge prime corporate customers with good financial history and sufficient collateral, typically used for long-term loans with a fixed term, such as business loans. The average MLR of the 19 registered commercial banks is 6.9984% per year, with Siam Commercial Bank offering the lowest MLR at 6.025% currently. ---TerraBKK.com

Article by: TerraBKK Investment Tips

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