webfact Posted August 26, 2014 Share Posted August 26, 2014 BAAC approves 10 billion baht worth of soft loans to help farmersBANGKOK, 26 August 2014 (NNT) - The Bank for Agriculture and Agricultural Cooperatives (BAAC) plans to provide low-interest loans to farmers in order to keep them away from loan sharks.BAAC Deputy Managing-Director Somsak Kangtheerawat stated that the project would help reduce farmers’ debt burdens and their dependence on informal lenders.Each farmer is entitled to receive a 100,000 baht loan per household at the maximum which carries an annual interest rate of 12 percent.The repayment period for these loans must not exceed 10 to 12 years. Farmers enrolled in the program are allowed to use real estate, savings accounts, or loan guarantors as collateral.The BAAC will launch this program during September 1-30 with a total budget of 10 billion baht. Farmers are required to present valid documentation and show proof that these debts have been bonafide.-- NNT 2014-08-26 Link to comment Share on other sites More sharing options...
Popular Post chainarong Posted August 26, 2014 Popular Post Share Posted August 26, 2014 A low interest rate of 12% that's helpful, beats 25% I suppose , however I think the bank is being miserable in as much as most good governments are making it 4% interest rate for government loans to farmers, the interest rate in ordinary accounts is SFA , so it shouldn't be at 12% , soft loans couldn't describe it better, that's my slant on this little rip-off Any offers. 3 Link to comment Share on other sites More sharing options...
losername Posted August 26, 2014 Share Posted August 26, 2014 More feeding of the addictions. Link to comment Share on other sites More sharing options...
givenall Posted August 26, 2014 Share Posted August 26, 2014 I wonder why don't they just give the money. The loans will be defaulted anyways. This way the Thai's will completely lose respect for loan concepts. This is way when a Thai want a loan from me means just give me 1 Link to comment Share on other sites More sharing options...
chotthee Posted August 26, 2014 Share Posted August 26, 2014 Wow 12%. Some bank must be making a killing. 1 Link to comment Share on other sites More sharing options...
Robespiere Posted August 26, 2014 Share Posted August 26, 2014 Populist?? 1 Link to comment Share on other sites More sharing options...
worgeordie Posted August 26, 2014 Share Posted August 26, 2014 12% !the only people the banks will be helping is themselves,no surprise there. regards worgeordie 1 Link to comment Share on other sites More sharing options...
surangw Posted August 26, 2014 Share Posted August 26, 2014 so they can pay back the loan sharks and assume more debt at a lower rate. Link to comment Share on other sites More sharing options...
Don Aleman Posted August 26, 2014 Share Posted August 26, 2014 At an usurious 10 % interest I think the bank is helping itself more than the farmers ! Link to comment Share on other sites More sharing options...
Thai at Heart Posted August 26, 2014 Share Posted August 26, 2014 (edited) 12%?????? What the hell kind of a social loan is that? Soft loan? That's like a sledgehammer. Edited August 26, 2014 by Thai at Heart 1 Link to comment Share on other sites More sharing options...
Robespiere Posted August 26, 2014 Share Posted August 26, 2014 10 billion baht for farmers. Now another 6 billion baht to prop up the rubber price. These guys are going to outspend the PTP before they even get their cabinet appointed. Link to comment Share on other sites More sharing options...
bassman Posted August 27, 2014 Share Posted August 27, 2014 "The repayment period for these loans must not exceed 10 to 12 years. Farmers enrolled in the program are allowed to use real estate, savings accounts, or loan guarantors as collateral."Makes you wonder how many more poor ageing Thai farmers will lose their land when these debts aren't repaid. Seen it happen numerous times around the "ville", old farmers mortgaging their land for the children who have a business plan that never comes together, usually involving a new pick up truck. Link to comment Share on other sites More sharing options...
marsstar14 Posted August 27, 2014 Share Posted August 27, 2014 12%?????? What the hell kind of a social loan is that? Soft loan? That's like a sledgehammer. Really?! A secured loan from a bank with an annual interest rate of 12 percent carries only a monthly interest rate of 1 percent. For a 100,000 baht loan, that's only 1,000 baht per month, which is nothing compared to what the loan sharks would be charging these poor farmers. 1 Link to comment Share on other sites More sharing options...
rickirs Posted August 27, 2014 Share Posted August 27, 2014 "Each farmer is entitled to receive a 100,000 baht loan per household at the maximum which carries an annual interest rate of 12 percent." BAAC is a state enterprise under the jurisdiction of the Ministry of Finance. As such it has potential access to funds through the government sale of Treasury Bonds whose current interest rate is 3.5% p.a. for a 10-year bond. Obviously, if it loans funds to Thai farmers at 12% p.a. it stands to make a tidy profit. Any loan default no doubt will be covered by further government borrowing so there is no downside to risks of farmer loan defaults. Link to comment Share on other sites More sharing options...
Thai at Heart Posted August 27, 2014 Share Posted August 27, 2014 "Each farmer is entitled to receive a 100,000 baht loan per household at the maximum which carries an annual interest rate of 12 percent." BAAC is a state enterprise under the jurisdiction of the Ministry of Finance. As such it has potential access to funds through the government sale of Treasury Bonds whose current interest rate is 3.5% p.a. for a 10-year bond. Obviously, if it loans funds to Thai farmers at 12% p.a. it stands to make a tidy profit. Any loan default no doubt will be covered by further government borrowing so there is no downside to risks of farmer loan defaults. Charging 12% on a secured loan like this, it is ridiculous. Link to comment Share on other sites More sharing options...
Nickymaster Posted August 27, 2014 Share Posted August 27, 2014 so they can pay back the loan sharks and assume more debt at a lower rate. No. It is same debt at lower rate. Link to comment Share on other sites More sharing options...
NCFC Posted August 27, 2014 Share Posted August 27, 2014 Imagine if Yingluck had pulled a stunt like this. TV would be in melt down. Sent from my iPhone using Thaivisa Connect Thailand 1 Link to comment Share on other sites More sharing options...
Thai at Heart Posted August 27, 2014 Share Posted August 27, 2014 Imagine if Yingluck had pulled a stunt like this. TV would be in melt down. Sent from my iPhone using Thaivisa Connect Thailand Indeed. The silence is deafening. 1 Link to comment Share on other sites More sharing options...
phutoie2 Posted August 27, 2014 Share Posted August 27, 2014 Imagine if Yingluck had pulled a stunt like this. TV would be in melt down. Sent from my iPhone using Thaivisa Connect Thailand Indeed. The silence is deafening. yep <deleted> is ginjag and all his pals? Link to comment Share on other sites More sharing options...
Bluespunk Posted August 27, 2014 Share Posted August 27, 2014 Imagine if Yingluck had pulled a stunt like this. TV would be in melt down. Sent from my iPhone using Thaivisa Connect Thailand The difference between what PT did and the BAAC is doing is that the BAAC is actually giving the farmers money and isn't taking their rice away from them. 1 Link to comment Share on other sites More sharing options...
brain150 Posted August 27, 2014 Share Posted August 27, 2014 7.2 Billion profit in 10 years ... that's good profit. And the banks don't even have the 10 Bio they tell everybody they will loan out ... all just happening in their balance sheet, but the profits are for real. Isn't it amazing how you can cheat people and there will still be some who think it's all good ? Link to comment Share on other sites More sharing options...
tomacht8 Posted August 27, 2014 Share Posted August 27, 2014 (edited) 10 billion baht for farmers. Now another 6 billion baht to prop up the rubber price. These guys are going to outspend the PTP before they even get their cabinet appointed. I would not support this such. Old gov. cash out in two years 1000 Billion for rice (where is this money?) + 350 Billion for flood - water - management (where is this money?) Total 1.350 Billion / 24 = 56,25 Billion per month. But the interest rates for the needy farmers are too high. Edited August 27, 2014 by tomacht8 Link to comment Share on other sites More sharing options...
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