Thailand Post wins green light to lend

[Admin]

Thailand Post wins green light to lend 
Bangkok Post: 8 Dec 2010
Thailand Post wins green light to lend

The cabinet yesterday approved a plan by Thailand Post to set up a subsidiary to provide microfinance services to low-income earners, using its nationwide post offices as a channel.

Juti: 18m have no access to loans

Information and Communications Technology Minister Juti Krairiksh said that the subsidiary would have initial registered capital of 50 million baht and would extend loans as small as 10,000 baht each.

He said that there are about 18 million low-income earners in the country who still have no access to loan sources and Thailand Post's new subsidiary would become their alternative.

Mr Juti said that the funds to be used for the microfinancing would come from Thailand Post's own profit and loans from the Government Savings Bank (GSB).

Interest charges on borrowers will be lower than commercial bank rates, he said.

Thailand Post now has more than 1,200 post offices across the country which could double as channels to provide microfinance.

Earlier, Finance Minister Korn Chatikavanij said he would like to see Thailand Post collaborate with state banks, namely the GSB and the Bank for Agriculture and Agricultural Co-operatives (BAAC), to provide the service because the banks already had their own microfinance programmes.

The ICT minister said that of the 18 million people below the poverty line with no access to loans, 4 million would likely borrow from loan sharks, a survey in 2009 showed.

They will be the target customer group of Thailand Post's new subsidiary, as well as those earning the daily minimum wage, currently 206 baht per day in Bangkok, or 5,000 baht per month.

http://www.bangkokpost.com/business/economics/210190/thailand-post-wins-green-light-to-lend

[boloa]

Information and Communications Technology Minister Juti Krairiksh said..Quote....There are about 18 million low-income earners in the country who still have no access to loan sources and Thailand Post's new subsidiary would become their alternative.

Soon to be 18 million Thai people queuing up outside the Post offices for a loan then..

[isanbirder]

Villagers will still borrow from loan sharks, even at a higher rate, because they don't want to be registered with the Government as debtors.  Silly, but true.

[Admin]

Villagers will still borrow from loan sharks, even at a higher rate, because they don't want to be registered with the Government as debtors.  Silly, but true.

I don't know it this is the reason, mostly the reason people are taking loans is because they can't meet the criteria requirements to get a loan in a reasonable interest rate from the banks.

basic requirements such as bank book with income in the last 3/6 months is very hard for hard working village people who are working for basic daily salary enough just to get by every day.

[EastFife4Forfar5]

Can we define "hard working village people"

[Admin]

Can we define "hard working village people"

I mean simple workers, working on daily salary wage of 150-300 Baht/day..