Mr Songpol pointed out that as a state-owned bank, GSB does not aim for maximum profit, but rather focuses on supporting all segments of society.
Government Savings Bank (GSB) is preparing a new initiative to assist borrowers with good repayment discipline by lowering their interest rates, in an attempt to help them pay off their debts more quickly.According to Songpol Chevapanyaroj, president and chief executive of GSB, economic conditions over the past seven years have been challenging as the Thai economy has suffered consecutive blows, starting with the Covid-19 pandemic in 2020, followed by the repercussions of the Russia-Ukraine war, global trade wars, and most recently an energy crisis fuelled by conflicts involving the US, Israel and Iran.
Therefore, addressing household debt problems solely through debt restructuring or extending repayment periods is not enough to tackle the burden of debt. The bank must also help reduce debt burdens by lowering interest rates for customers who consistently make good repayments. In addition, if customers need liquidity, the bank may provide additional loans, Mr Songpol said.
This initiative would help encourage financial discipline among borrowers and serve as a reward for good customers. For example, if borrowers make timely repayments for three or six months, they will receive interest rate reductions, enabling them to repay their debts faster. However, if they default on repayments, the interest rate will revert to the original rate.
