Bangkok--21 Nov--KASIKORNBANK
Lease and hire purchase for machinery and equipment from Kasikorn Factory and Equipment Co., Ltd. (KF&E) is being provided to aid the recovery of flood-hit customers with the “reduce-extend-increase” plan for machinery purchase/repair, carrying a special interest rate of 4 percent for the first three years of the total seven years of maturity. A six-month grace period for principal and interest is also being offered for customers’ immediate assistance as the floodwaters recede.
Mr. Sasawat Virapriya, Executive Chairman of Kasikorn Factory and Equipment Co., Ltd. (KF&E), the machinery leasing subsidiary of KASIKORNBANK, said the severe flooding has caused widespread damage to businesses. According to Kasikorn Research Center, at least 96-160 billion Baht of the total 240 billion Baht of business machinery and equipment in flooded areas has been damaged, as some factories managed to move their machinery to a safe place.
KASIKORNBANKGROUP’s assistance measures for customers can be divided into three stages: customers surveying the damage to their business, machinery and equipment; business rehabilitation with machinery repair and replacement; and production acceleration to full capacity to compensate for the production halt.
KF&E plans to assist businesses during their rehabilitation through machinery and equipment purchase with a “reduce-extend-increase” plan by offering an effective interest rate reduced to 4 percent for the first three years, an extension of installment period of up to seven years, and an increase of liquidity for businesses through a grace period for principal and interest for no more than six months. They will also be offered a maximum credit limit of up to 100 percent of machinery value.
For customers who wish to repair their machinery, KBank offers credit for business rehabilitation, including workplace renovation and machinery repair. For those who already have a machinery leasing limit, KF&E will extend the grace period for principal and interest repayment for up to six months, and provide an extension of another six months if the situation does not improve.
Apart from financial measures, KF&E is also offering other assistance to customers, including cooperation with machinery dealers who are the customers’ business partners for machinery examination and repair after the water recedes, as well as experts in machinery and factory cleanup. For those who wish to replace or import machinery, the company will contact experts for advice and convenient and timely machinery importing procedures. In case of machinery damage, the company will contact insurers for a fast insurance claim.
Mr. Sasawat added that once the flooding subsides, rehabilitation of residences, factories, and roads, and the construction of permanent dikes, will boost demand for construction machinery and equipment. According to Kasikorn Reserch Center, import value of construction machinery and equipment in 2012 will steadily increase by at least 10 percent. The growth will come largely from construction machinery such as excavators, dozers, shovels, and crane trucks, and manufacturing machinery in the metals, plastics used in automotive parts and electronics industries, including computerized machinery or CNC machines, injection molding machines, plastic blowing machines and thermoforming machines.
KF&E wishes to be a part of the efforts to assist business rehabilitation for the resumption of goods manufacturing. Interested customers can ask for more information at any KBank branch, or the K-Biz Contact Center by calling 0-2888-8822.