Licence applications for pico finance operators on the rise

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Licence applications for pico finance operators on the rise

By THE NATION

 

 

The number of applicants for a licence to become pico finance and pico-plus finance operators continued to increase in October from September, according to Fiscal Policy Office (FPO) spokesman Pornchai Triraveja.

 

 

A pico finance operator is one with a capital of at least Bt5 million, who is allowed to lend not more than Bt50,000 per person. A pico-plus operator has a capital of Bt10 million and is allowed to lend not more than Bt100,000 per person.

 

The number of companies applying for both licences since December 2016 to the end of October this year was 1,231 in 76 provinces of which the top three provinces were  Nakon Ratchasima (110 applicants), Bangkok (95 applicants), and Khon Kaen (64 applicants).

 

Given that in the same period 126 companies returned their licences in 51 provinces, the net number of applicants in 75 provinces was 1,106.

 

Of the total, the number of those obtaining both licences was 712 in 72 provinces. Six hundred and seventeen firms in 68 provinces have started operations.

 

The net number of applicants for pico finance was 997 in 76 provinces, of which 701 were granted. Of the total, 606 have started service in 68 provinces.

 

The net number of applicants for pico plus was 109 in 43 provinces, of which 11 were granted in six provinces. All have started operation.

 

As of September this year, accumulated approved loans stood at 138,479 accounts totalling Bt3.679 billion or an average of Bt26,572 per account. Of the total, 68,199 accounts totalling Bt2.011 billion were loans with collateral backing. They account for 55 per cent of total accumulated approved loan.

 

As of the same month, the outstanding loans stood at 64,336 accounts totalling Bt1.755 billion.

 

Source: https://www.nationthailand.com/business/30378933

 

-- © Copyright The Nation Thailand 2019-12-01

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[KKr]

what are the guidelines for interest rates, anyone knows ?

 

[northernboy]

4 hours ago, KKr said:

what are the guidelines for interest rates, anyone knows ?

 

up to 36 % annually inclusive of cost in fee and interest per year. 

 

Were normal private lender must charge less than a bank. 

So call it a rich man's license to be a loan shark. As at least 5 million capital are needed to register.