Thai Savings Bank Adds 50 Billion Baht for EV Loans, Solar Schemes
Thai Savings Bank has doubled its EV loan allocation to 100 billion baht after exhausting its initial 50 billion baht tranche, while launching a new solar panel financing programme with over 1,000 customer requests already received.
Thai Savings Bank director Songpol Cheevapaññarojn announced strong uptake of the government's energy transition initiatives. The bank's first tranche of 50 billion baht in electric vehicle loans has been fully disbursed, prompting the bank to approve an additional 50 billion baht to meet ongoing demand. "EV loan demand has been excellent," Songpol said. "The initial 50 billion baht allocation is exhausted, and we've added another 50 billion baht. If that is fully utilized, we can consider further increases." The Thai Savings Bank and Government Housing Bank will lead solar panel installation financing. Over 1,000 customers have requested solar installation loans in the past month. Under the new solar programme, the government will cover installation subsidies while banks provide low-interest credit. "The exact interest rate hasn't been finalized, but it will definitely be affordable," Songpol said. He noted that solar installation is an investment requiring careful evaluation. The most suitable candidates are homes using at least 50 percent of their electricity during daylight hours with roofs facing the right direction and free from building shadows. "Equipment prices have fallen significantly. For qualifying households, payback should take about seven years, while solar panels last 20–25 years, making the remaining period essentially income generation and expense reduction." In the first eight months of the year, the Thai Savings Bank reported continuous profitability and loan growth across all segments. Soft loans with a 1 trillion baht ceiling have seen 500 billion baht approved and disbursed. The EV loan programme's first phase of 50 billion baht was so popular that the bank authorized an additional 50 billion baht. Supply chain and clean energy financing expanded significantly from the previous year, with over a thousand requests for energy transition credit. The bank's non-performing loan ratio remains below 4 percent and continues declining, reflecting improved repayment behaviour among small customers. The bank's net interest margin stands at 1.7–1.9 percent, the lowest among all commercial banks in the system, as it has cut lending rates to assist borrowers and raised deposit rates to support savers.
