CIMB Thai (CIMBT) has become the country's first bank to offer loans for electric motorcycles.
The electric motorcycle leasing loan is available through the bank's subsidiary, WorldLease, with interest rates starting at 1.5% a month, said Adisorn Sermchaiwong, the bank's senior executive vice-president.
The interest rate for regular motorcycle loans averages 1.9% a month.
In the initial stages there is a demand risk because almost all buyers use cash for the purchase, Mr Adisorn said.
Still, the loan will open business opportunities for CIMBT.
Electric vehicles (EVs), including motorcycles, are expected to gain momentum in the Thai market in the long run.
"Electric motorcycle buyers always buy with cash," Mr Adisorn said. "With our attractive interest rate for loans, this should expand the customer base."
Buyers of electric motorcycles typically have a high level of education and income, as well as financial discipline, he said.
Mr Adisorn said WorldLease did not set a specific target for the new loan product. The company's main customer base is the low-income segment with monthly income of 8,000-15,000 baht.
WorldLease's motorcycle loan portfolio amounts to more than 4 billion baht, with a non-performing loan ratio above 4% that it wants to keep within 5% this year.
CIMBT is collaborating with Edison Motors, Stallions and WorldLease to support electric motorcycles in the Thai market. Edison is a local startup, Stallions is a motorcycle maker, and WorldLease is a motorcycle leasing company.
In related news, Total Access Communication recently signed a memorandum of understanding with M Vision Plc, a coordinator between EV importers and distributors and FSMART, the provider of Boonterm kiosks, to operate charging kiosks for electric scooters.
CIMBT shares closed yesterday on the Stock Exchange of Thailand at 0.79 baht, down one satang, in trade worth 392 million baht.
