TTB Bank Targets 5 Billion Baht in Credit-Score Loans

TTB Bank is overhauling its vehicle mortgage lending standards by replacing vehicle age with credit scores as the primary factor in determining interest rates. According to TTB Bank CEO Thakorn Piyaphan, the bank is implementing risk-based pricing principles through its new "TTB Drive" product for vehicle pledges without title transfer. The new system uses credit scores from the National Credit Bureau (NCB) instead of vehicle age to set rates, allowing borrowers with strong repayment histories to access rates starting at just 11.11% per year, or 0.52% monthly.

The initiative, called the "Good Payer Credit" program, aims to encourage financial discipline by rewarding responsible borrowers with better rates. Previously, TTB applied this approach to personal loans through its "TTB CashTuGo" product and found that over 80% of customers received approval at rates averaging 5% lower than the old standard, benefiting more than 28,600 customers with 5 billion baht in total lending and saving them around 800 million baht over the life of their loans.

The vehicle mortgage market, which includes over 5 million registered vehicles in the system, has traditionally relied on vehicle age for pricing, sometimes resulting in rates as high as 24% annually even for borrowers with excellent payment records. TTB Bank data shows that approximately 77% of customers in this market maintain on-time payment histories and should qualify for lower rates reflecting their actual financial behavior. The new product accepts vehicles up to 20 years old, supports both debt-free vehicles and refinancing from other institutions, and uses fixed rates throughout the loan term.

TTB Bank targets disbursing 5 billion baht through this product to 14,000 borrowers between August and December 2024, expecting to generate total interest savings of approximately 1 billion baht for customers over the life of their loans. The bank is also launching a campaign called "Good Payer Credit—TTB Credit" with the messaging "Pay well, get a better rate than before," covering four types of loans including the new vehicle product, personal loans, home refinancing, and home equity refinancing. An additional promotion called "TTB Privilege—Pay Well, Get Well" offers customers who maintain three consecutive months of on-time payments chances to win gold and other prizes totaling over 600 rewards worth more than 500,000 baht.

This approach aims to shift the mindset from "paying well just maintains your credit" to "paying well earns you real benefits," ensuring financially disciplined borrowers access credit at fair costs aligned with the Bank of Thailand's Responsible Lending guidelines promoting sustainable borrowing and repayment.