Thai central bank cuts interest rates for credit cards, personal loans

BANGKOK (Reuters) - Thailand’s central bank on Friday introduced additional debt relief measures, including interest rate cuts by 2-4 percentage points for credit cards and personal loans, to help debtors during the coronavirus outbreak.

The maximum interest rate for credit cards will fall to 16% per year from 18%, while the rates for personal loans will be reduced to 24-25% from 28%, effective from Aug. 1, the central bank said in a statement.

The new rates for revolving loans and instalment loans will be 25% and for auto title loans will be 24%.

The central bank will raise credit lines for credit cards and personal loans for some good debtors from August to December.

Lenders must urgently help borrowers with debt restructuring such as extending payment periods and reducing interest rates, it said.

Reporting by Orathai Sriring; Editing by Martin Petty