The Bank for Agriculture and Agricultural Cooperatives (BAAC) has revealed 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 maximum loan of THB100,000 per household 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 this month with a total budget of THB10 billion. Farmers are required to present valid documentation and show proof that these debts are genuine.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
