Vehicle Loan 'Rod-Tam-Ngoen'
Sevices Overview Vehicle Loan"Rod-Tam-Ngoen"
The Company provides car loan services to general retail customers and corporate customers who own cars under the brand “Rod-Tam-Ngoen” which covers both (1) hire-purchase loan with vehicle registration books transferred and (2) Loan with vehicle registration books as collateral (Personal loan under supervision with car registration as collateral).
The types of cars that customers can request for service include trucks, personal cars, and commercial vehicles (pickup trucks and vans), which customers must use the vehicle registration manual as collateral when applying for a loan and must be the owner of the vehicle. The customer must pay monthly installments consisting of principal and interest.
When considering offering Rod-Tam-Ngoen loan services, the Company evaluates two primary factors: (1) the customer’s preference for either car hire purchase loan service, transfer of ownership of the car registration book, or car registration pawn loan type, and (2) possession of the customer’s vehicle for the specified period outlined by the Company. In determining the credit limit, the Company assesses the type and value of collateral, the borrower’s ability to repay debt, and verifies the qualifications of customers and guarantors, as applicable. Additionally, the Company adheres to a policy specifying a maximum contract period of 72 installments and sets a maximum asset age limit of 25 years (including the contract period) for collateral. Typically, cars registered as collateral for the Company’s loans fall within this average age range.
As of December 31, 2023, the collateral vehicles can be categorized by age as follows:
As of December 31, 2023, the collateral vehicles can be categorized by age as follows:
| Age of the collateral vehicle | Proportion (%) |
|---|---|
| 0 - 5 years | 11.14 |
| 6 - 10 years | 39.01 |
| 11 - 15 years | 29.19 |
| 16 - 20 years | 13.19 |
| 21 - 25 years | 3.99 |
| Over 25 years | 3.48 |
| Total | 100.00 |
Each customer can request a loan service with vehicle registration as collateral, limited to one contract per collateral. The Company earns interest income, fee income, and other service income from lending at mutually agreed rates specified in the contract. For car registration pawn loans, which do not require the transfer of vehicle ownership, it falls under the category of personal loans under supervision. The Company may levy service fees, with the total combined rate of interest income, fines, service fees, and other fees not exceeding the maximum interest rate (Effective Rate) set by the BoT1. Moreover, besides interest income, fines, service fees, or similar charges, the Company may collect reasonable expenses actually incurred as per BoT guidelines. However, customers receiving this type of loan service still retain ownership of their vehicle and can continue to use it as normal.
This loan type is categorized as a car registration pawn, which falls under personal loans supervised by using vehicle registration as collateral. To verify ownership, loan applicants must submit the original vehicle registration document to the Company. While there’s no need for a formal ownership transfer at the Department of Land Transport, customers must sign a transfer request form and receive a power of attorney from the department. In the event of defaulting on three consecutive installments, customers agree to transfer ownership and surrender the vehicle to the Company for sale, with proceeds used to repay the debt. Collateral vehicles must adhere to the regulations outlined in the Road Traffic Act B.E. 2522 (“Traffic Act”). Accepted vehicle types include personal cars, commercial vehicles (pickup trucks and vans), and trucks. As of December 31, 2021, 2022, and 2023, the Company’s loan portfolio for Rod Tam Ngoen Loan is detailed in the following table.