Bangkok – Prime Minister Gen Prayut Chan-o-cha has implored parents not to borrow money from loan sharks to acquire school supplies for their children.
Advising parents not to seek informal loans, the Thai premier said the government has several loan programs to help people improve household liquidity and cash flow. For instance, the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives are offering a very low-interest personal loan of up to 50,000 baht per person. Also, a similar loan program is offered by pico-finance operators nationwide.
In addition, pawn shops under the supervision of the Local Administrative Organization have adjusted their interest rates down to 0.25% a month on principal of 5,000 baht or less and 1% a month for a loan over 5,000 baht.
The principal of a loan is the full amount borrowed.
Gen Prayut also asked every household to be more financially disciplined and develop money-saving habits.
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