BANGKOK, Thailand – The Ministry of Finance has reported progress in addressing informal debt in Thailand, approving financial assistance for over 22,400 cases between December 1, 2023, and November 7, 2024, totaling 1.06 billion baht. The assistance, provided in partnership with various banking institutions, includes programs such as Debt Repayment Loans for Informal Debt and the Revolving Fund for Low-Income Farmers to support registered informal debtors.
To tackle informal lending issues, the ministry has promoted Pico Finance as a legal, small-scale lending solution at the provincial level. By October 2024, 1,143 entities were licensed to operate Pico Finance across 75 provinces, with loans totaling 44.7 billion baht distributed across more than 4.6 million accounts. Pico Finance offers accessible funding through secured and unsecured loans with interest rates on a reduced balance. Additional information on the application process is available via the ministry’s website or hotline.
Pico Finance loans are offered in two categories, Pico Finance, and Pico Plus, with borrowing limits of up to 50,000 baht and 100,000 baht, respectively, and annual interest rates of up to 28% or 36%, depending on loan size and collateral. Borrowers must live, work, or have a registered address in the same province as the lender. These loans are structured to provide emergency funding with manageable fees and collection costs for borrowers.
The Ministry of Finance is also revising regulations to enhance consumer protections and broaden access to Pico Finance. The new rules are expected to boost transparency, support ethical lending, and strengthen oversight of Pico Finance operators nationwide. (NNT)
