Minimum monthly credit card payments to be raised to 8% from Jan 1
Credit card users will have to pay a higher minimum percentage of their bill from the beginning of next year.
Commercial banks will start enforcing the central bank’s rule of monthly repayment at minimum 8% of total credit card spending by their customers.
Currently, credit card issuer banks allow customers to pay 5% of the accumulated spending amount on the monthly due date.
The Bank of Thailand (BOT) has made it mandatory from January 1 next year to increase the minimum payment to 8% of the total amount.
The 8% rate will be in use for one year and the minimum payment rate will be increased to 10% on January 1, 2025.
The minimum payment rate will be on top of the monthly liability for purchases on instalments.
The BOT has instructed commercial banks to inform their customers of the new minimum payment rates. The instalment amount had been reduced to 5% during the Covid crisis. The central bank is paving the way for 10% minimum repayment, which prevailed before the pandemic.
A source from Bangkok Bank said it had already informed its customers of the new minimum credit card payment rates.
