The Ministry of Finance is taking proactive steps to address unregulated debt problems, aligning with national policy.
Pornchai Thiravet, the spokesperson for the Ministry of Finance, said that the agency’s measures include coordinating with various agencies to comprehensively combat the problems of unregulated debt among citizens. These measures involve serious crackdowns on unregulated lenders, mediating unregulated debt disputes, and providing formal credit facilities. Specifically, the Ministry of Finance aims to transition unregulated debtors into the formal financial system to escape the debt trap.
Krisada Chinavicharana, Deputy Minister of Finance, emphasized that state banks, including the Bank for Agriculture and Agricultural Cooperatives (BAAC), continue offering loans to address unregulated debt. The Government Savings Bank’s project offers loans up to 50,000 baht at a fixed interest rate of 1% per month for a maximum of 5 years. Additionally, the Government Savings Bank provides loans for small independent professionals, with a maximum of 100,000 Baht at the same interest rate, repayable over a maximum of 8 years or 96 installments. The BAAC also offers loans to preserve land from mortgage and conditional sale, with a maximum amount of 2.5 million Baht per individual at an interest rate of 5% per annum, repayable over a maximum of 20 years.
For unregulated creditors wishing to operate legally, the Ministry of Finance offers licensing for nano-finance businesses. Initial conditions for a nano-finance license include a registered capital of no less than 5 million Baht, loan limits of 50,000 Baht per debtor, and interest rates capped at 33% per annum with collateral, and 36% without collateral. For the upgraded Pico Plus license, the required registered capital is at least 10 million Baht, with a loan limit of 100,000 Baht per debtor. Loans exceeding 50,000 Baht can charge a maximum interest rate of 28% per annum. Nano-finance businesses are prohibited from accepting deposits from the public and can operate only within the licensed province. (NNT)
