First Choice, a personal loan service provider developed by Ayudhya Capital Services Co, has unveiled two new digital loan products, one of which focuses on freelancers.
One of the new products, which is already available, is First Choice SnapCash. This product focuses on freelancers, online merchants, and younger office staff. It does not require a financial statement from loan applicants, said First Choice managing director Pathatai Kulachan.
The First Choice SnapCash brand aims to acquire 55,000 new customers, with a total of 500 million baht in new loans, by the end of next year. The digital personal loan product offers a maximum credit line of 10,000 baht, with the longest loan period being 12 months. The maximum interest rate charged is 25% per year.
Customers can apply for First Choice SnapCash on the UChoose platform, and the company will use alternative data to approve loan applicants. Targeted customers and the younger generations are expected to be attracted by the lack of a requirement for a financial statement, alongside the convenience of the application process, Ms Pathatai said.
The digital loan is intended to provide more financial opportunities to consumers who cannot access bank loans and those using loan sharks, which is in line with the Bank of Thailand's financial inclusion policy, she added.
Ms Pathatai said the digital loan product would help targeted segments build up a digital footprint and widen their access to other financial services and products. At the same time, First Choice expects to maintain its non-performing loan (NPL) rates at a satisfactory level.
The company has also partnered with Shopee, an e-commerce platform, with a plan to offer another digital personal loan product, called SEasy Cash by First Choice, this year to tap online merchants on the Shopee platform.
In terms of its overall business, First Choice recorded an NPL ratio of less than 3% for the first nine months of this year, with new loan growth of 30 billion baht. Total loan growth under the First Choice brand is expected to be 40-50 billion baht this year.
