Government approves 10 billion baht emergency loans to help low income earners out of loan sharks

[webfact]

Government approves 10 billion baht emergency loans to help low income earners out of loan sharks

 

 

BANGKOK: -- The government yesterday gave approval to two state banks to extend a total of 10 billion baht emergency loans to low income earners in its effort to solve the longstanding unofficial or unregulated loans problem encouraging the poor.

 

Under the approval by the cabinet,  the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives will each provide 5 billion baht emergency loans to about 200,000 low income earners and farmers.

 

Low income earner and farmer will be given loan not exceeding 50,000 baht per person.

 

Nattaphon Chatusri-Phitak, the special advisor attached to the Prime Minister’s Office, stated that the emergency loan scheme was approved in order to allow the poor – who are mostly comprised of farmers – greater access to financial resources in the event of emergencies.

 

Besides, he said this will also allow authorities to eradicate unofficial or unregulated loans which has been a longstanding problem plaguing the country.

 

According to him, these loans are meant to provide emergency funds and applicants are forbidden from taking out these loans and then refinance the funds.

 

A static interests of 0.85% per month will be charge which amounts to 10% per year. Furthermore, either a guarantor or collateral must be provided in order to qualify. It is expected that no less than 200,000 poor people will be able to benefit from the program and applications can be made starting from today.

 

Full story: http://englishnews.thaipbs.or.th/government-approves-10-billion-baht-emergency-loans-help-low-income-earners-loan-sharks/

 

-- © Copyright Thai PBS 2017-02-22

[Thaiwrath]

30 minutes ago, webfact said:

Low income earner and farmer will be given loan not exceeding 50,000 baht per person.

Unfortunately, some people will get a bank loan, spend it, and revert back to loan shark, getting seriously in debt, with some losing everything.

[worgeordie]

The majority of loans will be used on alcohol,gambling just wasted,

and they will be in even more debt,what will the Government do to

make sure the loans are repaid,at least those in debt have an incentive

to repay loan sharks,violence, if the dont pay,

regards worgeordie

[timewilltell]

Loan sharing has to be outlawed and relentlessly pursued, with advertising to vilify them as low class in society and contemptible and especially those who loan money on houses which they buy at a very low price charging huge upfront costs to prevent redemption and destroying many lives as a result. This is a scourge on Thai society 

[anotheruser]

They are going to loan people money that are so dumb that they have acquired previous bad debts on things like gambling? Lol good idea. Hope they make their points.


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[Grubster]

Why not just tell the loan sharks that they will not be repaid for illegal loans and any harm done to the borrower will be paid for by the loan shark.

[Srikcir]

15 hours ago, webfact said:

Furthermore, either a guarantor or collateral must be provided in order to qualify.

Wouldn't this be the same qualifier for a regular loan from a bank? Hasn't it been because farmers cannot meet such requirements, ie., having negative net worth or insufficient income to meet loan repayment, that they can't get more loans? So unless the government turns "a blind eye" to farmers not meeting these conditions (ie., government itself will privately guarantee farmer loans as it has done repeatedly in the past under Prayut), farmers will not be able to get the emergency loans.

[little mary sunshine]

Loans available at "The Happy Zone" 

[lujanit]

Please correct if I am wrong but wasn't a similar scheme also instigated about a year ago?