The Bank of Thailand (BOT) has proposed the government allow non-bank establishments to lend to consumers under the “nano-financing” initiative earlier proposed to allow greater access to loans by all segments within the economy.
BOT Governor Prasan Trairatworakun told reporters he had proposed to the Ministry of Finance the BOT’s adjustment of its regulation on non-bank establishments’ issuance of personal loans.
The aim, he said, was to allow non-bank lending to also cover “nano-financing” for business undertakings. Under earlier proposals, loans issued by non-bank establishments would only cover personal loans for consumption purposes.
Under the “nano-financing” scheme, each borrower may be granted a maximum of THB200,00.
The ceiling for interest would be 36 percent per annum however the BOT governor suggested this interest rate is too high for borrowers with good repayment record.
He noted that ultimately, all decisions rest with the Ministry of Finance.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
