Half of Thailand's Debt Relief Applicants Fail to Meet Criteria

[snoop1130]

File photo for reference only

 

Amidst Thailand's mounting household debt crisis, the freshly launched 'You Fight, We Help' debt relief programme is witnessing an unexpected hiccup. Despite a rush of applications, many hopeful borrowers are ineligible for support.

 

Introduced by the Bank of Thailand, this scheme allows eligible borrowers to pause interest payments for three years and adopt a more manageable debt repayment plan. Yet, merely a month post-launch, it appears clarity surrounding the programme's criteria has become a significant hurdle.

 

Kris Chantanotoke, CEO of Siam Commercial Bank, revealed that several applicants do not fulfil the basic eligibility requirements, sparking a review of the bank's communication strategies. Mr Chantanotoke emphasised the bank's commitment to genuine support while acknowledging the steep learning curve during the programme's nascent stage.

 

Statistics from the central bank show that out of 461,029 applications, only half gained approval. This disparity highlights a widespread misunderstanding in the applicant pool concerning eligibility, specifically regarding debt default periods.

 

 

The debt initiative offers temporary relief to those with various loans, aiming to curb Thailand's soaring household debt-to-GDP ratio, which approached 90% last year. Loans considered under the scheme include mortgages, car loans, and small business loans, provided borrowers defaulted on repayments for fewer than 356 days.

 

Financial leaders like Sakchai Peechapat of Tisco Financial Group report high rejection rates, as only 30% of their applicants qualify. Meanwhile, Kiatnakin Phatra Financial Group's CEO, Aphinant Klewpatinond, mentions that half of their applicants faced eligibility issues, primarily due to misunderstandings of the scheme's terms.

 

The banks are now making efforts to clarify the conditions and plan to maintain standard debt collection proceedings for non-qualifying applicants. How this corrective approach will affect future applications remains to be seen, but the programme's success hinges on clear communication and defined processes.

 

-- 2025-01-20

 

 

[hotchilli]

12 hours ago, snoop1130 said:

Amidst Thailand's mounting household debt crisis, the freshly launched 'You Fight, We Help' debt relief programme is witnessing an unexpected hiccup. Despite a rush of applications, many hopeful borrowers are ineligible for support.

Who'd have guessed that... 

[Theforgotten1]

My son’s teacher was teaching about money management/ budgeting and the like , we know her , she is in eye watering amounts of debts , she goes around trying to borrow from one month to the next , getting further in debt . I laughed when my son told me what she was teaching , but it is not laughable really 

[Utalk2mutt]

About 10 years ago I got friendly with a teacher, very pretty lady too. Met her a couple of times and she started referring to us as a couple. Got into the conversation about how I would be expected to take care of her if things went too much further. I listened and then switched off when she said her monetary expectation per month was 30K. Turns out she had debts in excess of 5M and I was expected to help her with that…exit stage left for a lucky escape.

[lordgrinz]

Thais love debt, the more they can obtain, the more they add to it. I have not met a single Thai, other than my wife who is not buried in debt.

[Thingamabob]

Thai banks must surely know what the rest of us know only too well, namely that Thai people are addicted to borrowing but less keen to paying back.

[Justanotherone]

a few decades ago, with a few million baht in the bank, it was impossible to get a CC

 

farmers or workers got it with very limited funds

 

as many here I presume, had to put 100k untouchable, to get a 90k credit card limit...

 

 

are the debts owned by banks at 6-20% or loansharks at 6-20% per day, week?