Bank of Thailand offers debt relief for car and motorcycle loan borrowers

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According to BoT deputy governor Ronadol Numnonda, the new measures, implemented on 14 May, will allow vehicle hire-purchase loans and car title loan borrowers, including motorcycle owners, to return their vehicles to creditors if they cannot repay debt because of the outbreak.

The Bank of Thailand (BoT) has added measures for retail loan restructuring, as part of its third phase of debt relief for individual borrowers, aiming to ease hardships caused by the COVID-19 pandemic.

According to BoT deputy governor Ronadol Numnonda, the new measures, implemented on 14 May, will allow vehicle hire-purchase loans and car title loan borrowers, including motorcycle owners, to return their vehicles to creditors if they cannot repay debt because of the outbreak.



If a vehicle is returned and borrowers still owe a balance, the central bank asked financial institutions to help restructure the remaining debt on a case-by-case basis. The financial institutions include commercial banks, specialized financial institutions and non-bank companies.



The measures also offer additional options for longer loan extensions and lower interest rates than the second phase. For mortgage borrowers, the central bank allows repayment on a “step-up” basis, which is a new measure for the third phase. (NNT)