GSB and BAAC extend over 10 billion baht in emergency loans to low-income earners

By Thai PBS

 

 

The Government Savings Bank (GSB) and the Bank of Agriculture and Agricultural Cooperatives (BAAC) have collectively extended emergency loans amounting to 10 billion baht to some 220,000 people so they do not have to seek loans from “loan sharks” and fall into unorganized debt trap.

 

Pornchai Theeravet, spokesman of the Fiscal Policy Office, said that the two state-owned banks also extended another 670 million baht in emergency loans to 15,000 low-income earners who have registered to be eligible to receive state welfare.

 

He said that, so far, the two state-run banks had lent over 10 billion baht to some 240,000 low-income earners to prevent them falling into the unorganized debt trap.

 

Full story: http://englishnews.thaipbs.or.th/gsb-baac-extend-10-billion-baht-emergency-loans-low-income-earners/

 

-- © Copyright Thai PBS 2018-04-23

says it  all, scale of personal debt here is  huge, seems   many my Wife speak to are up to the neck in it and requests for cash off them frequent, many simply run away to another province to shirk their responsibilities and maybe slope back in a few  years in the hope its  all going to be forgotten.

She told me  a  funny  story yesterday about a friend of hers  who borrowed 10k baht 15 years ago and after much moaning finally did pay it back 7 years later, the borrowing  girl  put a  story on facebook  as she had then lent  money to a friend and she said ( on facebook)

" you drive a new  car, you have a new  phone, you go on holidays and you look  rich".......so why cant you pay me back the money you owe me.

 

It seems she  now knew how  my  Wife  felt when she  refused to pay  back the money shed  borrowed off my Wife  years ago

 

As for the bank lending this  money......I reckon they can kiss it  all goodbye!! Maybe just another vote  Junta ploy!

Edited April 22, 20188 yr by kannot

1 hour ago, kannot said:

says it  all, scale of personal debt here is  huge, seems   many my Wife speak to are up to the neck in it and requests for cash off them frequent, many simply run away to another province to shirk their responsibilities and maybe slope back in a few  years in the hope its  all going to be forgotten.

She told me  a  funny  story yesterday about a friend of hers  who borrowed 10k baht 15 years ago and after much moaning finally did pay it back 7 years later, the borrowing  girl  put a  story on facebook  as she had then lent  money to a friend and she said ( on facebook)

" you drive a new  car, you have a new  phone, you go on holidays and you look  rich".......so why cant you pay me back the money you owe me.

 

It seems she  now knew how  my  Wife  felt when she  refused to pay  back the money shed  borrowed off my Wife  years ago

 

As for the bank lending this  money......I reckon they can kiss it  all goodbye!! Maybe just another vote  Junta ploy!

Yes it sounds like a Junta PR campaign to me also. Give the poor some bread crumbs and they will vote for the little grumpy General. 

"The Pico Finance provides loans of not exceeding 50,000 per person with interest rate of less than 36% per year"

 

36% per year seems perfectly reasonable to me.

A loan to a Thai is not a loan but a gift.

Many of the extended family and friends are involved with this scheme. A major problem is that a 'chanote' is required. And when the bank note is not repaid, the land is taken away. Most of these people are going to end up with less than what they have now and owe even more money.

 

We know one family who started out with 40 rai and they are now down to the last one rai where the family house is located. And that will soon be gone.

So, fully expect sales of essential new and latest mobile phones to go up now !  

Getting them further into debt to get them out of debt? What a novel idea!

24 minutes ago, missoura said:

Many of the extended family and friends are involved with this scheme. A major problem is that a 'chanote' is required. And when the bank note is not repaid, the land is taken away. Most of these people are going to end up with less than what they have now and owe even more money.

 

We know one family who started out with 40 rai and they are now down to the last one rai where the family house is located. And that will soon be gone.

Maybe, just maybe they were not living within their means.

This is of course a good scheme, multiple governments have done this. They are trying to get people to refinance their loans cheaper as with loan sharks. That is admirable of course but they will still lose it all if they have no money to repay. 

 

Lots of people not living within their means wanting a new car new phone loaning for it and then ending up with nothing. 

PICO have 36% interest rate.

What different between government bank and "loan shark"?

Same Same but Same Same!

The "loan business" in Thailand is nothing else than organized crime. I checked the interest rates and pay back schemes of various motorcycle dealers, and all of them proved wrong. I.e. a loan offered with 3.9%  effectively had an interest rate of 9.x per cent. I used the EMI comparison tool, and rechecked the given values with a German annuity calculator. Payback schemes without a given percentage ended up to have interest rates up to 20%. As far as I know, the legal interest in Thailand may not exceed 28%. The published rate of "less than 36%' must be an error.

 

Edited April 23, 20188 yr by fxe1200

1 hour ago, HiSoLowSoNoSo said:

Yes it sounds like a Junta PR campaign to me also. Give the poor some bread crumbs and they will vote for the little grumpy General. 

 Glad we're having a new law that says no more populist policies that can affect the country's fiscal health.

 

Edited April 23, 20188 yr by TallGuyJohninBKK

3 hours ago, kannot said:

says it  all, scale of personal debt here is  huge, seems   many my Wife speak to are up to the neck in it and requests for cash off them frequent, many simply run away to another province to shirk their responsibilities and maybe slope back in a few  years in the hope its  all going to be forgotten.

She told me  a  funny  story yesterday about a friend of hers  who borrowed 10k baht 15 years ago and after much moaning finally did pay it back 7 years later, the borrowing  girl  put a  story on facebook  as she had then lent  money to a friend and she said ( on facebook)

" you drive a new  car, you have a new  phone, you go on holidays and you look  rich".......so why cant you pay me back the money you owe me.

 

It seems she  now knew how  my  Wife  felt when she  refused to pay  back the money shed  borrowed off my Wife  years ago

 

As for the bank lending this  money......I reckon they can kiss it  all goodbye!! Maybe just another vote  Junta ploy!

A very good sum up, you hit the nail right on the head

1 hour ago, missoura said:

Many of the extended family and friends are involved with this scheme. A major problem is that a 'chanote' is required. And when the bank note is not repaid, the land is taken away. Most of these people are going to end up with less than what they have now and owe even more money.

 

We know one family who started out with 40 rai and they are now down to the last one rai where the family house is located. And that will soon be gone.

& this is due to the way they think that nothing could possibly go wrong as I am doing it for family or a close friend

30 minutes ago, fxe1200 said:

The "loan business" in Thailand is nothing else than organized crime. I checked the interest rates and pay back schemes of various motorcycle dealers, and all of them proved wrong. I.e. a loan offered with 3.9%  effectively had an interest rate of 9.x per cent. I used the EMI comparison tool, and rechecked the given values with a German annuity calculator. Payback schemes without a given percentage ended up to have interest rates up to 20%. As far as I know, the legal interest in Thailand may not exceed 28%. The published rate of "less than 36%' must be an error.

 

Yes it's amazing how they calculate interest here

Car for example - Cut the deal with the shop at 2.5 % , but when I checked against an Auss bank Loan Calculator it is actually 5 % (I read about this before )

Motor bike distant Relo just bought - Could of paid 50,000 cash, but on full finance it worked out they paid 65,000 for bike at 20 % interest over 2 yrs = 3,450 p/m

13 minutes ago, BEVUP said:

Yes it's amazing how they calculate interest here

Car for example - Cut the deal with the shop at 2.5 % , but when I checked against an Auss bank Loan Calculator it is actually 5 % (I read about this before )

Motor bike distant Relo just bought - Could of paid 50,000 cash, but on full finance it worked out they paid 65,000 for bike at 20 % interest over 2 yrs = 3,450 p/m

...see here. It is more than 20%, as it is an annuity loan.

But why do they need to borrow the money?  I guess it will be one of those circular arguments, yet imagine part of the reason is that the poor are getting ever poorer, and the middle class aren't having it so easy either.  So no pat on the back for the government from me.  In fairness, this is a global issue, eg, consider why food banks are necessary in the UK.