Srisawad Money on Wheels, a microfinance subsidiary of Thailand’s Bank of Ayudhya, reportedly has scaled down lending to fresh-market vendors and plans to shift its focus to financing tractors and trucks. In explanation, Srisawad reportedly cited its unfamiliarity with the products of the market vendors and unsustainable growth. The focus on trucks and tractors is due to increased demand from farmers switching over from ploughs to more modern equipment.
Before beginning to serve fresh-market vendors in 2012, Srisawad had focused on lending for purchases of motorcycles, cars and commercial vehicles. Since that time, the company has disbursed THB 50 million (USD 1.7 million) in loans to approximately 2,000 vendors. Loans for vendors range in size from THB 10,000 (USD 336) to THB 100,000 (USD 3,360) and carry an annual interest rate of 28 percent [1].
Srisawad, also known as Consumer Finance Group Services (CFGS), was acquired by the Bank of Ayudhya from US-based insurer American International Group (AIG). Srisawad provides cash loans to those holding title to a car or other vehicle. Srisawad operates approximately 200 branches in Thailand. For the year 2011, Bank of Ayudhya reported total assets of THB 948 million (USD 31.8 million) [2].
By Brendan Millan, Research Associate
About Srisawad Money on Wheels
Srisawad Money on Wheels, also known as Consumer Finance Group Services (CFGS), is a microfinance provider in Thailand and subsidiary of the Bank of Ayudhya, a commercial bank. Srisawad provides cash loans to those holding title to a car or other vehicle. Srisawad operates approximately 200 branches in Thailand. Since entering the fresh-market industry in 2012, the company has disbursed THB 50 million (USD 1.7 million) in loans to approximately 2,000 vendors. For the year 2011, Bank of Ayudhya reported total assets of THB 948 million (USD 31.8 million).
Sources and Additional Resources:
[1] The Nation: “One Year on, CFG Services Slows Down Lending to Fresh-market Vendors” by Sucheera Pinijparakarn, http://www.nationmultimedia.com/business/One-year-on-CFG-Services-slows-down-lending-to-fre-30199118.html
[2] Bank of Ayudhya: “Annual Registration Statement As of December 31, 2009”, http://www.krungsrionline.com/download/InvestorRelation_1155investor_56_1_2009.pdf
MicroCapital.org story, January 20, 2013, “Thai Government to Add $2.6b to Village and Urban Revolving Fund”, https://www.microcapital.org/microcapital-brief-thai-government-to-add-2-6b-to-village-and-urban-revolving-fund/
MicroCapital.org story, 25 October 2012, “Savings Bank of Thailand Expands Microfinance Services in Border Areas”, https://www.microcapital.org/microcapital-brief-government-savings-bank-of-thailand-expands-microfinance-services-in-border-areas/#more-20721
MicroCapital Universe Profile: Srisawad Money on Wheels (CFG Services), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CFG+Services+%28CFGS%29
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