Krungthai Card (KTC), a non-bank subsidiary of Krungthai Bank, has teamed up with Thailand Post to offer car title loans at post offices. The partnership aims to generate 45 million baht in new loans over the next three months.
According to Rueankeaw Kasemsavatsri, head of auto loans at KTC, partnerships are a key strategy for the company to broaden its customer base and expand new loan offerings this year. The company previously collaborated with Thailand Post on various services.
The car title loan collaboration is a three-month pilot project, running from April to June this year. KTC plans to provide car title loans at 45 Thailand Post locations across five provinces: Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom.
"We aim to secure 45 million baht in new loans during the pilot phase. If we reach this target, we will look to extend the collaboration and increase our loan growth target," she said.
KTC plans to grow its car title loan portfolio by 3 billion baht this year and the first few months have been positive. Despite a slowdown in the Thai economy, loan demand rose as consumers seek additional liquidity to manage daily expenses, said Ms Rueankeaw.
Online merchants, who are already familiar with Thailand Post's services, represent the company's target market for this collaboration. The partnership also aims to serve KTC customers eager to lift their income and improve liquidity amid the economic slowdown, she said.
Consumers can apply for a KTC car title loan at select post offices via the digital platform, with assistance from Thailand Post employees trained to provide this service. Loan applications are processed within an hour, and KTC offers loans for up to 100% of the collateral value, with a maximum loan amount of 1 million baht. People can learn more at eligible post offices.
Waraporn Kongkiewphan, chief corporate strategy officer at Thailand Post, said with its strong network of around 57,000 locations and 25,000 delivery staff nationwide, Thailand Post can support KTC in expanding its loan services and acquiring a new customer base, particularly small and medium-sized enterprises and online merchants.
This collaboration aims to provide funding support to businesses and create greater opportunities for underserved and unserved customers, particularly those in remote areas, by offering better access to funding, she said.
Thailand Post works with other financial institutions to offer services such as loans and insurance products, allowing it to expand its offerings beyond logistics and better serve its customers, said Ms Waraporn.
