KTC officially launches its new loans business, “KTC P BERM,” a result of a startup by new-gen people. The Firm proudly presents inclusive services, including “car title loans” and “motorcycle title loans“ as options for perseverant individuals of all occupations to gain access to funds that are legitimate, transparent, and fair to assist the customers to live their lives freely. The product’s three core strengths are high credit limit, fast and on the spot, and instant cash. The Firm will use technology coupled with the workforce to approve loans with a 2021 goal of 1,000 million Baht for its port of receivables.
Ms. Rueankeaw Kasemsavatsri, Vice President – "KTC P BERM” Loans Business, Krungthai Card Public Company Limited, reveals how the vehicle title loan business came to be: “KTC has been searching for business opportunities to generate a new source of income for the Firm, and to cater to the business world that changes at a fast pace, KTC consolidated a small team of six people from different KTC core departments to work together like a startup in accordance to the Firm’s strategic plan to operate as an agile organization. The goal of the team was to create a new option for loans as a solution for perseverant individuals who would like to fulfill their dreams, wishes, and have their own burden-free vehicle or motorcycle as a possession, but lack financial opportunity and access to a legal source of funds. This group of individuals has a high ratio and is dispersed across Thailand. For these reasons, we became interested and began to intensely study a loan business model with vehicle title as collateral, which eventually lead to the formation of the “KTC P BERM” brand, with the “Option for Perseverant Individuals” concept. This also marks KTC’s major step in advancing into the loans business with collateral for the first time.”
“Based on the aforementioned concept, we created unique selling points and established a different way to operate the vehicle title loans business by endorsing the “Digital Twin” principle. Digital Twin is the act of combining technology with the workforce in loan services to make the loan approval process easy, convenient, fast, safe, and with enhanced customer experience. This includes applying for loans on an application on a tablet, allowing KTC personnel to perform loan service processes for the customer right at the desired location. Customers do not have to waste time visiting the branch, and will receive approval results and cash transfers into their accounts within a processing time of only 2 hours.
“The overall outlook of the vehicle title loan business has a high potential growth level. Per information from the Bank of Thailand, according to July 31, 2020, there are a total of 3,392,032 accounts in the personal loans business marked as loans with vehicle title as collateral, with a total of up to in 137.637 billion Baht outstanding credit balance in the system. As a Firm who is trying to penetrate a business, there are considerable major challenges in establishing market share in this industry, given economic factors and regulatory measures. But with multidimensional study and analysis of data, constant scrutiny of the needs of target customers, along with the business structure, operational and network management systems which are considered KTC’s strong points, we believe that these factors will help us develop products and services that will achieve business growth goals in the near future. We expect that by the end of 2021, there will be approximately 1,000 million Baht in port of receivables.”
Ms. Thida Bunyalekha, Senior Manager – "KTC P BERM” Loans Business, explains in regards to business strategy: “KTC P BERM utilizes KTC’s strength in its distribution network to advance in the market by prioritizing on the spot registration and loan approval or P BERM Delivery, instead of using a branch expansion model like other companies. This allows us to approve loans for customers everywhere, whether it is at home, the workplace, or at a meeting point that is convenient for the customer, anytime even during the weekend. Customers will receive approval results and instant cash transfers into their accounts within 2 hours, which is considered the product’s core strength for the marketing plan in this initial phase. The business will focus on targeting members in Bangkok and vicinity and will expand to major districts by region. This will be done along with searching for business alliances to create opportunities to yield access to target customers who wish to request for “KTC P BERM” loans. Recently, the Firm partnered with “Lalamove” in allowing freelancers who drive motorcycles and cars under the Lalamove Thailand network to have convenient and fast access to loans with vehicle title as collateral and cash loans, simply by providing their Lalamove work information as supporting documents for loan application instead of payslips and financial documents for loan approval which generated excellent feedback. KTC also plans to expand its collaborative efforts to other business alliances to create further business opportunity.”
“What is outstanding for 'KTC P BERM’ vehicle title loan is how it simplifies everything and reduces burden and complications when it comes to gaining access to loans on the customer’s end. This includes three strengths that are different from the market, which includes: a high credit limit of up to 700,000 Baht and a low fixed interest rate starting at only 0.98% per month or 21% annual effective rate, fast and on the spot approval within 2 hours, and instant cash, with simple document requirements without the need of payslips and commercial registration certificates. Moreover, loan applicants may use their vehicle right away without disrupting their lives.”
Mr. Vorrapong Vonggapan, Manager – "KTC P BERM” Loans Business, discusses the loan’s target customer and details: “The target customer group for 'KTC P BERM’ is people of all occupations, whether it be permanent staff, business owners, traders or freelancers with Thai nationality, aged 20-65 years with earnings of 8,000 Baht or more, at least 4 months of work experience, or 6 months for business owners and traders. Applicants are required to own a vehicle or motorcycle with a vehicle ownership booklet under the name of the loan applicant. Interested patrons can apply for the loan at any “KTC Touch” service centers or by contacting P BERM Delivery Tel. 02 123 5300.”
“'KTC P BERM’ vehicle title loan is for vehicle owners regardless of the vehicle age with a credit limit of up to 700,000 Baht, starting annual interest rate of 21%, and a maximum installment period of 60 months. Applicants are required to use their vehicle ownership booklet under their name as the owner and to bring their vehicle for a check-up to apply."
“'KTC P BERM’ motorcycle title loan is for motorcycle owners regardless of the vehicle age with a credit limit of up to 150,000 Baht, with an annual interest rate not exceeding 24%, and a maximum installment period of 60 months. Applicants are required to use their motorcycle ownership booklet under their name as the owner and to bring their motorcycle for a check-up to apply.”