Bangkok: The Government Savings Bank has announced a reduction in its maximum annual interest rate for loans by 0.15%, effective May 14. The move comes as part of an effort to align with the latest economic trends and monetary policy changes.
According to Thai News Agency, Mr. Vitai Ratanakorn, President of the Government Savings Bank, stated that the decision follows the Monetary Policy Committee’s resolution to decrease the policy interest rate by 0.25% annually. The bank has implemented reductions in all types of interest rates for both loans and deposits. Specifically, the MOR interest rate is reduced by 0.15% per year, the MLR by 0.075% per year, and the MRR by 0.05% per year.
The new minimum lending rate for overdraft customers (MOR) is set at 6.345% per annum, the rate for large borrowers (MLR) at 6.575% per annum, and the rate for retail borrowers (MRR) at 6.545% per annum. These adjustments position the bank’s lending rates as the lowest compared to the six major commercial banks. In contrast, deposit interest rates will see a smaller reduction of 0.05-0.10% per annum. The changes are set to take effect on May 14, 2025.