It was the first time he had made a purchase using a consumer loan.

“Normally, I pay by cash to buy products. I have to wait until I have enough savings to make the decision to buy. But when First Choice expanded its business in my country, it became easier for me to buy using their loan,” he said.

Somkhith is one of 2,100 customer accounts of Krungsri Leasing Services Co Ltd, a joint venture between Ayudhya Capital Services Co Ltd, Ayudhya Capital Auto Lease Co Ltd, and Unity Capital Co Ltd.

“Since we established the business in Vientiane on December 2014 with a registered capital of US$3 million, we have provided hire-purchase and consumer loans worth Bt376 million by the end of 2015. Of the total, Bt314 million were new loans provided to our customers last year to a combined 2,100 accounts,” Krungsri Leasing Services managing director Suradej Punturaumporn said.

The company is targeting new loans worth Bt1.03 billion, or total outstanding loans of Bt1.13 billion at the end of this year from 5,060 accounts. Up to 80 per cent of new loans will be for car hire purchase, and the rest for consumer products such as mobile phones, home appliances, computers, notebooks, etc.

Normally, Laotians spend cash to buy all products, but the company has expanded its business and has been pushing hire purchase and consumer loans since December 2014. This push has not only increased the number of customers but also the loan value. They are also good, reliable customers because the lender has zero non-performing loans, he said.

“Our sales have risen 40 per cent after joining hands with First Choice to offer loans to our customers,” said Sudprapai Luengcham of Jiro Coproration Co Ltd, a mobile phone and home-appliances dealer in Vientiane. “Up to 40 per cent of our customers have bought products using First Choice,” she added.

This is the trend and there is great potential for financial business in Vientiane, Suredej said.