BAAC provides loans for purchase or repair of income-related motorcycles

 

   

BANGKOK (NNT) - The Bank for Agriculture and Agricultural Cooperatives (BAAC) is providing credit for low-income earners to buy a motorcycle for a maximum of 80,000 baht for use as motorcycle taxi, or to pay a maximum of 30,000 baht for bike repairs.

 

Assistant BAAC manager Somphop Rodklang said today that income-raising motorcycle credit plan, provides the opportunity for welfare card holders, farmers and others to have access to a source of finance and keep themselves well away from loan sharks. Those who may not have any collateral can still be provided with a loan to buy a bike with which they can earn a living. The Thai Credit Guarantee Corporation provides a 100% guarantee for BAAC borrowers in exchange for a maximum 2% annual fee.

 

BAAC borrowers are required to obtain a license to operate a motorcycle taxi in Bangkok, Pathum Thani, Nonthaburi, Nakhon Pathom, Samut Prakarn, Chonburi, or in any other province where they are registered with the Department of Land Transport or its provincial branch offices, as taxi motorcyclists.

 

The BAAC provides a range of 10,000 to 80,000 baht in loans for the purchase of a motorcycle for use as a motorcycle taxi, and loans of 10,000 to 30,000 baht for the repair of a motorcycle taxi. Monthly repayments are accepted over a period of no less than three years and no more than five years. The bank has prepared a total of one billion baht for the credit program which is available from now until June 30, 2020.

 

-- © Copyright NNT 2019-08-26

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This is sure to add to the serious household debt situation and lending institutions bad debt ratios but what's that matter if motorbike sales are up and the it gives the growth figures a boost to make it look like the government is actually doing something. 

There are some who are of the belief growing household debt is taking a serious human toll as well as holding back economic growth. But no one seems to care if that is the case. 

I didn't realise there was such a shortage of motorcycle taxis and drivers, requiring the need to make money available for this enterprise.

1 hour ago, bluesofa said:

I didn't realise there was such a shortage of motorcycle taxis and drivers, requiring the need to make money available for this enterprise.

The point is, that motorcycle sales in Thailand are declining. Now the MC lobby intervened. And how, I wonder, will the BAAC control, if the newly credit bought MC is used as a taxi or for other businesses.

Then they tell them they don’t have to pay them back-so it’s an indirect form of welfare, that doesn’t count as welfare but raises  gdp 

Another  line of stupidity to  borrow from.