AEONTS and KTC in the Top 10 Gainers as the Market Price in BOT’s Relaxed Loan Criteria
BOT’s relaxed policy on personal loan and credit card ceiling to directly benefit AEONTS and KTC’s core business.
Bank of Thailand (BOT) on Friday (August 20) relaxed soft loan criteria for debtors who never had a credit line and also set a higher ceiling for credit card and personal loans. This revised policy directory benefits AEONTS and KTC, both of which core business is providing credit and debit card services.
The credit card and personal loans credit line ceiling has been revised to 2x the monthly income which earlier was 1.5x for individuals with a salary below 30,000 baht. Minimum repayment of 5% is to be maintained for credit cards until December 2022.
In terms of personal loans, the ceiling has been raised to 40,000 baht as well as repayment period is extended up to 12 months. Both AEONTS and KTC should see a boost in loan growth in accordance with the policy. Additionally, this would increase the liquidity of its customers which might trigger higher spending capacity.
AEONTS’ core customer base are individuals with monthly income below 30,000 compared to KTC’s. Thus, the benefit of raising the credit line ceiling would have a higher weighted impact on AEONTS.
AEONTS led the main board’s gainer list in the morning session trading at 193.50 baht up by 7.8% while KTC held position in the top ten gainer’s list trading at 64.00 baht up by 7.56%.