Ngern Tid Lor PCL or TIDLOR reiterates that the case of OCPB approving new draft regarding regulating interest rate ceiling for motorcycle hire-purchase not exceeding 23%, new car not exceeding 10%, and used car not exceeding 15% does not affect business. Clarifies currently having very small hire-purchase portfolio. Confident vehicle title loan business in Q3/2022 grows exceeding target from business expansion strategy and overall economic recovery.
Mr. Piyasak Ukritnukun, Managing Director of Ngern Tid Lor Public Company Limited or TIDLOR, revealed that regarding the Office of the Consumer Protection Board (OCPB) approving the draft announcement of the committee on contracts stipulating car and motorcycle hire-purchase business as a contract-controlled business, with key substance being setting interest rate ceiling for motorcycle hire-purchase not exceeding 23% per year, new car hire-purchase not exceeding 10% per year, and used car hire-purchase not exceeding 15% per year; the company is confident that OCPB's control of car/motorcycle hire-purchase contracts does not affect Ngern Tid Lor's main business operations because it emphasizes vehicle title loans with collateral as main revenue, and still focuses on expanding vehicle title loan portfolio.
Regarding overall business operations in the past Q3, confident that vehicle title loan business will have better growth rate than targeted from strategy to expand business using “Tidlor Card” innovation to facilitate customers approved for loans in withdrawing cash according to approved limits from over 50,000 leading commercial bank ATMs nationwide 24 hours a day, continuous branch expansion, and portfolio expansion strategy to help consumers access funding sources for business use or increasing liquidity.
“We are confident we can expand vehicle title loan portfolio this year to grow 23-28% as targeted. We planned to handle the rising interest rate trend and reinforce capital potential in business operations. In September, we offered new debentures totaling 6,500 million baht to institutional and high net worth investors and received good response, setting fixed interest rate returns, resulting in the company being able to control long-term interest rate costs,” Mr. Piyasak said.