Siam Commercial Bank : SCB raises lending rates in line with FIDF contributions

SCB raises lending rates in line with FIDF contributions, which resume at the regular rate

Siam Commercial Bank (SCB) has announced a raise in lending rates in line with the Financial Institution Development Fund (FIDF) contribution, which resumes at the regular rate. Effective 1 January 2023 onward, the Minimum Loan Rate (MLR), Minimum Overdraft Rate (MOR), and Minimum Retail Rate (MRR) will be raised by 0.40%.

SCB Chief Executive Officer Mr. Kris Chantanotoke said, "The Bank of Thailand has required banks to resume making FIDF contributions at the regular rate of 0.46% of their deposits from January 2023, from the reduced rate of 0.23% between 2020 - 2022 under relaxed measures to assist clients during the COVID-19 pandemic. As a result, SCB needs to raise MLR, MOR, and MRR by 0.40% to the rates before FIDF contributions were reduced in April 2020."

Effective 1 January 2023 onward, the Minimum Loan Rate (MLR) will be raised to 6.52% p.a from the current 6.12%, the Minimum Overdraft Rate (MOR) will be raised to 6.15% p.a. from the current 5.75%, and the Minimum Retail Rate (MRR) will be raised to 6.745% p.a. from the current 6.345%.

SCB is aware of impacts on clients due to this interest hike and will continue special measures to support fragile clients, keeping their potential and opportunity to adapt in the future in mind. Clients can seek advice and assistance by contacting SCB via the contact channel they are using, or by calling the SCB Call Center at 02-777-7777.